Contract is an agreement between two parties which enforceable by the law, section 2(h) of Law of

Contract ntract Act.

Discharge this is a relies from obligations when a legal duty has ended. Discharge of contract is a
situation whereby a contract is brought an end or refer to the way in which a contract it comes to an
end. A contract is said to be discharged when it ceases to operate for example when the right and
obligation created by it comes to an end. So a contract can come to an end in the following ways;.

Discharge by performance

Performance is doing what is required under the contract. The Law of contract Act section 37(1) 1 state
that the parties to a contract must perform their respective promises,unless such performance is
excused under the provision of this Act or any other Law. Discharge by performance take place in
actual performance when the parties to a contract fulfill their obligation arising under the contract
within the time and in a manner prescribed or where a party argues that their contractual obligations
have been substantially performed an therefore that contract should be discharged. The general rule is
when performance must exactly match the requirements laid down in the contract and this is known as
entire performance. If the first party fails to perform entirely, the other need pays nothing at all. For
example in the case of Cutter v Powell (1795)2 a ship’s engineer undertook to sail a ship from Jamaica to
Lverpool, but died before the voyage was compete. The court held that nothing could be recovered in
respect of his servce; because he had not fulfilled his obgation as provided under section 37(2) of the
Law of contract Act3 a promises bind the representatives of the promises in case of deaths of such
promisor before performance unless a contrary intention appears from the contract.

Discharge by agreement

As contracts are created by agreement so they may be discharged by agreement where the parties
themselves can agree to end the contract, form a new contract or vary the original one.The rule in this
regard is as follow Eodem modo quo quid constituitur eodem modo destruitur which means that a
thing may be destroyed in the same manner in which is constituted. So, an agreement by the parties to
an existing contract to extinguish the rights to obligation that have been created is itself a binding
contract and consideration is necessary to make agreement binding . A contract can be discharged by
agreement under novation, alteration, rescission,an remission as provided under section 62 of The Law
of Contract Act4 where the parties to a contract agree to substitute a new contract for it,or to rescind or
alter it the original contract need not be performed. I the case of British Russian Gazette Ltd v
Associated Newspapers Ltd 5The claimant offered to forgo libel actions against a newspaper in return
1
LCA CAP 345(R.E 2019)

2
Cutter v Powell (1795)
3
section 37(2) of the Law of contract Act Cap 345 R.E 2019

4
Law of contract by Act Cap 345 R.E 2019

5
British Russian Gazette Ltd v Associated Newspapers Ltd [1933] 2 KB 616
for £1,050 in full satisfaction of any settlement and costs he might receive. Before payment was made
he brought the actions. The court rejected his argument that there could be no accord and satisfaction
until payment was made. The offer to forgo the actions and the response were good consideration by
which he was bound.

Discharge by frustration

Also contract can be discharged if it is frustrated. Frastration means the situation that arises when
condition that was part of a contract which was reason for entering the contract in the first place does
not occur to cause termination of a contract. Four conditions must be satisfied for frustration to
discharge a contract which are unforeseeable event ,a change in the law making a previously legal
contract illegal for example contracts with enemy aliens., that makes performance impossible for
example death of one of the parties where personal performance is necessary and destruction of the
subject matter of the contract for example in the case of Taylor v Caldwell (1863)6The parties in the
case had entered into an agreement concerning the use of the Surrey Gardens and Music Hall for a
series of ‘grand concerts, and day and night fetes’. Six days before the planned date for the first concert,
the building was burnt down, making it impossible for the concerts to go ahead. The party planning to
put on the concerts sued for breach of contract, arguing that the owners had failed to provide the Music
Hall as agreed under the contract. It claimed the money it had wasted on advertisements. The action
failed because performance by the owners had become impossible, so the contract had been frustrated.
Also in the case of Bank of New York v.UK (2021) 7 the court decided that a contract can't be
temporarily frustrated and result in discharge contact. The court argue that a contract can only be full
frustrated for discharge of contract and if a contract could be revived at letter stage this wouldn't
amount to frustration ,so to a contract couldn't be discharged

By breach of contract;

Breach of the contract means promisor fails to perform the promises or breaking of the obligation
which a contract imposes. It occurs when a party to the contract without lawful excuse does not fulfill
his contractual obligations on by his own act makes it impossible that he should perform his obligation
under it. Also, breach divided into two types which is actual breach of contract and anticipatory breach
of contract. In actual breach of contract means; one party performs defectively, differently from the
agreement, or not at all (actual breach): In the cases of Pilbrow v Pearless de Rougemont & Co (1999)
8
The Court of Appeal accepted that as a matter of fact .the standard of legal services provided had been
that of a competent solicitor. And indicate in advance that they will not be performing as agreed
(anticipatory breach), where an anticipatory breach occurs, the other party can sue for breach straight
away and this can be seen in the case of Frost v Knight (1872)9The defendant had promised to marry the

6
Taylor v Caldwell (1863)

7
Bank of New York v.UK (2021)

8
Pilbrow v Pearless de Rougemont & Co (1999)

9
Frost v Knight (1872)
plaintiff once his father had died. He later broke off the engagement while his father was still alive, and
when his ex-fiancée sued him for breach of promise (which was a valid claim in those days, though not
any longer), he argued that she had no claim as the time for performance had not yet arrived. This
argument was rejected and the plaintiff’s claim succeeded

Discharge by Lapse of time

The limitation Act, 1963 lays down that a contract should be performed within specified period of time,
called period of time limitation. If it is no action is taken by the promisee within the period of limitation,
he is deprived of his remedy at law. The limitation Act lays down a period of three years for the
enforcement of most types of rights

operation of law,

a contract may be discharged independently of the wish of the parties for example in operation of law it
includes b death of either party, by insolvency, by unauthorized alteration of the terms of a written
agreement and by rights and liabilities becoming vested in the same person.

CONCLUSION

As we’ve discussed, there are multiple ways in which a contract can be discharged. However, the most
common way to discharge a contract is through performance. This is also the best way to discharge a
contract since it means that all parties will have received what they originally intended to when entering
into the agreement. If managing contractual obligations and upcoming contract deadlines is a challenge
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REFERENCE

BOOKS

Mercantile Law , Discharge of contract

Catherine Elliott & France Quinn series Contract Law (7 edition)

CASES

Cutter v Powell (1795)

British Russian Gazette Ltd v Associated Newspapers Ltd

Taylor v Caldwell (1863)

Bank of New York v.UK (2021)

Pilbrow v Pearless de Rougemont & Co (1999)

Frost v Knight (1872)

STATUS

The law of Contract Act 345 R.E 2019