How Contracts End Discharge

By Performance Time – Court will uphold reasonable time if no time is specified in the contract. Reasonable time is what is fair and proper. If either party specifies time is of essence this means that the time is critical and essential for the objective. Time – Court will uphold reasonable time if no time is specified in the contract. Reasonable time is what is fair and proper. If either party specifies time is of essence this means that the time is critical and essential for the objective. Satisfaction – Usually specified in a contract as performed in “a satisfactory manner.” The court upholds a “reasonable person test” when one party is not satisfied. Satisfaction – Usually specified in a contract as performed in “a satisfactory manner.” The court upholds a “reasonable person test” when one party is not satisfied.

Substantial vs. Complete - Court will consider substantial performance as complete except for minor details. It is slightly less than full performance. Monies can be awarded less the difference of the minor details. Substantial vs. Complete - Court will consider substantial performance as complete except for minor details. It is slightly less than full performance. Monies can be awarded less the difference of the minor details. Tender – The act of offering to fulfill your payment of consideration. If it is rejected you are released from the contract. Tender – The act of offering to fulfill your payment of consideration. If it is rejected you are released from the contract. Exception is payment of debt. If tendered and rejected you are only released from the incurring interest not the total debt. Person offering to pay debt must offer legal tender(coins and paper money) Exception is payment of debt. If tendered and rejected you are only released from the incurring interest not the total debt. Person offering to pay debt must offer legal tender(coins and paper money)

By Agreement Mutual Release – each party gives up something so that the agreement to terminate is binding Mutual Release – each party gives up something so that the agreement to terminate is binding Accord and satisfaction – one contract is substituted for another. Acceptance of a performance that was different than the one agreed upon. Promise to do something is the accord. Actual performance of a promise is the satisfaction. Accord and satisfaction – one contract is substituted for another. Acceptance of a performance that was different than the one agreed upon. Promise to do something is the accord. Actual performance of a promise is the satisfaction.

By Impossibility of Performance Death or illness if it requires the personal service of the person who has died. If someone can be substituted for the deceased then the contract is not discharged. Death or illness if it requires the personal service of the person who has died. If someone can be substituted for the deceased then the contract is not discharged. Destruction of the subject matter – the exact subject of the contract is destroyed. If subject matter was not specific or exact then contract is still valid and needs to be fulfilled. The “means” sometimes may be destroyed Destruction of the subject matter – the exact subject of the contract is destroyed. If subject matter was not specific or exact then contract is still valid and needs to be fulfilled. The “means” sometimes may be destroyed Illegality – After the contract was made then actions of performance or subject matter became illegal Illegality – After the contract was made then actions of performance or subject matter became illegal

By Operation of Law Wrongful alteration – writing/changing terms of written contract. The party wronged can still enforce the contract. Wrongful alteration – writing/changing terms of written contract. The party wronged can still enforce the contract. Statute of Limitations – the right to enforce the agreement is bound by a time limit. This time limit is imposed by the state in which the contract is made. Statute of Limitations – the right to enforce the agreement is bound by a time limit. This time limit is imposed by the state in which the contract is made. A time out of the statute of limitations occurs when the debtor moves out of state or a person is legally insane A time out of the statute of limitations occurs when the debtor moves out of state or a person is legally insane Bankruptcy – payment of debt is discharged. Except for educational loans, taxes, alimony, support and maintenance. Bankruptcy – payment of debt is discharged. Except for educational loans, taxes, alimony, support and maintenance.