What is a discharge of contract?

A discharge of contract is when two parties involved in a contract agreement end the contract. This can occur on several grounds, including mutual agreement and performance of all obligations. In Mississippi, discharging a contract can also be done through breach of contract, repudiation or renunciation of contract, rescission, or frustration of purpose. A breach of contract is when one of the parties fails to fulfill the terms of the contract, such as not paying on time or not fulfilling the agreed-upon terms. If the other party does not accept the breach, they may choose to end the contract and pursue legal action against the breaching party. Repudiation or renunciation of contract occurs when one of the parties verbally or in writing expresses that they do not intend to fulfill their contractual obligations. Rescission involves one of the parties retracting from the contract and returning any money or goods received during the agreement. Frustration of purpose is when an unpredictable event causes performance of the contract to become impossible. For example, if the contract includes delivery of a product, but the product becomes unavailable due to a natural disaster, the contract may be discharged. In all cases of discharge of contract, it is important to act in accordance with legal requirements and to document any changes in the contract. If the dispute cannot be resolved between the two parties, a court may need to intervene.

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What is a discharge of contract?

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