What is a discharge of contract?

A discharge of contract is a legal event that occurs when the obligations between two parties are no longer in effect. Under contract law in Texas, a contract is considered discharged when the performance by both parties has been completed, when an agreement is reached to end the contract, when a court orders the contract be ended, or when some other circumstances exist that make it impossible for the parties to continue their obligations. For example, if two parties enter into a contract, but one party does not fulfill their obligations, the contract is usually considered discharged. This means that the party who did not fulfill their obligations is not legally obligated to complete their part of the contract. The same is true for contracts that are illegally made, those that involve an illegal act, or those that expire or become impossible to fulfill. In some cases, a court may order the contract to be discharged. This may be necessary when one party defaults on their payments or when it is proven that acceptable performance is not possible. When a court orders the discharge of a contract, the contract is extinguished and both parties are released from their obligations. It is important to be aware of discharge of contract laws in Texas so that you can protect yourself in the case of a dispute. If you are ever involved in a contract dispute and you feel that the contract should be discharged, it is in your best interest to consult with a qualified attorney so that you can understand your rights and safeguards under contract law in Texas.

Related FAQs

What is an executory contract?
What are standard form contracts?
What is the effect of illegality in a contract?
What is rescission of a contract?
What is a novation of a contract?
What is a performance bond?
What is a contract of guarantee?
What is an anticipatory breach of contract?
What is the parol evidence rule?
What is the standard of care in a contract?

What is a discharge of contract?

Related FAQs

Related Blog Posts