A contract is a legally binding agreement between two or more parties, which outlines the terms and conditions of their relationship. However, there are circumstances under which a contract may be discharged, or terminated, before its completion. These can include mutual agreement, breach of contract, frustration of purpose, and impossibility of performance, among others. However, there are certain scenarios in which a contract cannot be discharged. In this article, we will discuss these scenarios in detail.
The first scenario in which a contract can be discharged is through mutual agreement. If both parties agree to terminate the contract, then it can be legally discharged. However, this requires a clear and unambiguous expression of consent by both parties.
Breach of Contract:
If one party fails to fulfill their obligations under the contract, then the other party may have the right to terminate the contract. This is known as a breach of contract, and it typically results in damages being awarded to the injured party.
Frustration of Purpose:
If the purpose of the contract becomes impossible to achieve, then it may be discharged. For example, if a contract is for the construction of a building, but the building is destroyed in a natural disaster, then the purpose of the contract becomes impossible to achieve.
Impossibility of Performance:
If one party is unable to perform their obligations under the contract due to unforeseen circumstances, then the contract may be discharged. For example, if a musician is contracted to perform at a concert but becomes seriously ill, then they may be unable to perform, and the contract would be discharged.
However, there are certain scenarios in which a contract cannot be discharged. These include the following:
Statute of Frauds:
The Statute of Frauds requires certain contracts to be in writing and signed by both parties in order to be enforceable. If a contract falls under this category and is not in writing, then it cannot be discharged.
Non-Performance by Non-Party:
If a third party’s non-performance prevents fulfillment of the contract, then the contract cannot be discharged. For example, if a contractor is unable to complete a construction project due to a delay caused by a subcontractor, then the contract cannot be discharged.
If a contract is illegal or against public policy, then it cannot be enforced. For example, a contract to commit a crime or engage in fraudulent activity cannot be discharged.
In conclusion, a contract can be discharged under various scenarios, including mutual agreement, breach of contract, frustration of purpose, and impossibility of performance. However, there are certain situations in which a contract cannot be discharged, including contracts that fall under the Statute of Frauds, non-performance by non-party, and illegal contracts. As a professional, it is important to understand these scenarios in order to provide accurate and informative content to readers.