LAW 122 Lecture Notes - Debit Card, Legal Tender, Cheque
21 Nov 2012
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Document Summary
A contract is discharged when the parties are relieved of the need to do anything more under the contract. Performance occurs when the parties fulfill all of the obligations contained in the contract. In some situations, however, it may be difficult to determine whether proper performance has occurred. Courts usually hold that time is not of the essence. Even if a contract states that performance must occur by a particular date, a party may be entitled to perform late. However, if it does so, it can be held liable for losses that the other party suffers as a result of the delay. In some situations, time is of the essence. If so, late performance can be refused, and if that happens, the contract will not discharged by performance. Furthermore, even if time is initially not of the essence, a party can insist upon timely performance by giving reasonable notice that performance must occur by a specific date.
