What is a discharge of contract?

A discharge of contract, in Nebraska contract law, is an act or event which legally ends the contractual obligations between two (or more) parties. This act or event can be either voluntary, resulting from a mutual agreement between the parties, or involuntary, due to violations or other events beyond the control of the parties. Voluntary discharge of contract is commonly referred to as "rescission". This occurs when the parties to a contract mutually agree to end their agreement. In this instance, both parties must go through a process of revoking the contract and restoring both parties to the same positions they were in prior to entering into the contract. This also requires that any benefits or goods that the parties may have exchanged during the course of the contract be returned. Involuntary discharge of contract occurs when a court of law, or another third party, determines that the contract has been breached. The breach of contract could be a result of a one-party defaulting on their obligations, or a fundamental change in the terms of the contract. In either case, the court can issue a ruling to enforce the discharge of the contract. This ruling requires that the party in breach of the contract compensates the other party for any losses or damages incurred as a result of the breach. In conclusion, discharge of contract is a legal way for parties to terminate agreements. This can be done either voluntarily or involuntarily, and often requires that both parties go through a process to restore each other to the original positions they were in prior to entering into the contract.

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What is a discharge of contract?

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