LAW 122 Lecture Notes - Lecture 10: Contractual Term, Force Majeure, Liquidated Damages
30 Nov 2016
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Document Summary
A contract is discharged when the parties are relieved of the obligation to do anything further under the contract. Not about the formation of the contract or what is in the contract. Operation of law (frustration: discharge by performance. Parties must perform exactly as the contract requires. Late performance (but not if time is of the essence) Substantial performance (but not if entire contract clause: discharge by agreement. You still have to perform the contract for it to be discharged. It depends upon type of term breached: condition: substantial term: warranty: lesser term; or intermediate: hybrid term. The innocent party only has the right to discharge if the other party has breached a condition, i. e. , if the other party has done something that substantially deprives the innocent party of the benefit of the contract. Defective performance party fails to properly perform contractual obligation buyer usually entitled to reject delivery unless defect truly trivial.
