Which of the following is an example of discharge of a contract by operation of law?
Asked by: Prof. Quinton Witting | Last update: September 3, 2025Score: 4.3/5 (15 votes)
Discharge by Operation of Law If performance becomes impossible, the duty is discharged. The underlying reasons for impossibility include the death or incapacity of a personal services contractor, destruction of a thing necessary for performance, and performance that is prohibited by law.
Which of the following is an example of discharge by operation of law?
Example of Discharge by Operational Law:
If a company becomes bankrupt, contracts with suppliers and clients may be automatically discharged by operation of law, relieving both parties from further obligations.
What is a discharge of contract by operation of law?
Contract discharge by operation of law refers to the automatic termination of a contract without any action or agreement by the parties involved. In other words, particular events or legal principles prescribed by law can discharge a contract.
What is an example of a discharged contract?
For example, the performing party is obliged to deliver 10 tons of sugar. Once all 10 tons have been delivered, both parties can discharge the contract by full performance. Sometimes the contract can be discharged by so-called substantial performance even if it wasn't full.
What is an example of termination by operation of law?
However, if a contract cannot be enforced, the operation of the law will terminate it. This can include situations where one or more of the parties involved in the contract were not of sound mind, they were not of legal age, or they were under the influence of drugs or alcohol.
Class 38 Discharge of contract by operation of law
What is an example of an operation of law?
Some examples of such actions by operation of law include a joint tenancy where any surviving joint tenants get title to the jointly owned property automatically when one joint tenant dies; asset transfers when someone dies without a will and that person's legal heirs automatically inherit property from their estate ; ...
What is an example of termination by agreement?
The Parties mutually agree that Contract shall be terminated effective [date] (the "Termination Date"). [Optional: Except as expressly provided herein, the Contract will terminate according to the terms as set forth therein.] Upon the Termination Date, the Contract shall have no further force or effect.
What are the three 3 ways in which a contract may be discharged?
A contract may be discharged through three primary ways, including 1) performance, wherein both parties fulfil their respective obligations stipulated in the contract, 2) agreement, where all parties reach a consensus to terminate or alter the original contract, and 3) frustration, which occurs when unforeseen events ...
What is an example of a discharge of a contract by waiver?
Waiver in simple words is the voluntary abandonment of one's right. For example let's say A owes B 1000 rupees. A has the right to claim this amount from B but due to some circumstances he voluntarily releases B of his obligation. Here A waived his right of 1000 rupees from B.
Which of the following discharges a contract?
The main ways that a contract can be discharged include through performance, breach, agreement or frustration.
What is the meaning of by operation of law?
The phrase "by operation of law" is a legal term that indicates that a right or liability has been created for a party, irrespective of the intent of that party, because it is dictated by existing legal principles. For example, if a person dies without a will, their heirs are determined by operation of law.
What is discharge and termination of contract?
The main difference is that discharge takes place when both parties have fulfilled their contractual obligations, while termination does not require this to end a contract. Ultimately, the conditions under which a contractual relationship ends determines whether the contract will be discharged or terminated.
What is an assignment of contract by operation of law?
[1] An assignment by operation of law can be interpreted as an involuntary assignment required by legal statute or certain court-ordered proceedings.
What are examples of discharge?
Verb She's due to be discharged from the hospital on Wednesday. We had to discharge several employees last week. Thousands of soldiers were discharged after the war.
What is discharge operations?
“Discharge” is the operation of removing cargo from a ship after it arrives at the destination port. This process involves various stakeholders, including port authorities, terminal operators, and freight forwarders, working together to unload and clear the cargo efficiently.
What can discharge a contract occur by?
Here are the three main ways this can occur: Agreement - a mutual agreement that the contract is no longer binding on both parties. Performance - when both parties have performed all of their obligations under the contract. Breach - when the obligations under the contract have been breached.
What is the discharge of a contract?
Discharge of a contract means termination of contractual relations between the parties to a contract. In other words a contract is discharged when the rights and obligations created by it are extinguished (i.e. comes to an end).
Which is the best example of rescission of a contract?
For example, suppose a buyer purchases a home based on false information. The buyer may then seek to rescind the contract and recover any money or property transferred under the contract.
What is an example of a waiver of a contract?
The A waiver by a Party one party to this Agreement of any breach of this Agreement by any other party to this Agreement shall not be effective unless in writing, and no such waiver shall operate or be construed as a waiver of the same or another breach on a subsequent occasion.
What is the most common way to discharge a contract?
Discharge by Performance and Agreement
Discharge by performance occurs when both parties have fully completed their contractual obligations. This is the most straightforward and common method of discharging a contract.
Which is the best way to discharge a contract quizlet?
The most common way is a discharge by performance, which means the contract comes to an end when both parties have fulfilled their respective duties.
Which of the following is not a way a contract can be discharged?
Which of the following is not a way a contract may be discharged through operation of law? There are 3 steps to solve this one. The correct answer is "Rescission."
What is an example of a termination contract?
Dear [Recipient's Name], I am writing to formally notify you of the termination of our contract, dated [Contract Date], for [Description of the Contract/Services]. According to the terms of our agreement, this letter serves as a [Number of Days] days' notice, and the contract will officially end on [Termination Date].
What can a contract be terminated by?
If a party fails to perform them, blocks the other party from performing the same, or violates the terms of the contract, they will have breached the contract, and the contract can be terminated.
What is an example of a termination note?
Termination Letter Template – Without Cause
I regret to inform you that your employment with [Company Name] is terminated effective [date]. [X weeks] of severance pay is being offered in exchange for signing the attached release of claims and returning the signed release to human resources no later than [date].