Discharge of Contract

Topics: Contract, Common law, Law Pages: 3 (849 words) Published: December 25, 2012
Area of law for this case is law of contract. Contract is defined of section 2(h) of the Contract Act (CA) as a contract is an agreement entered into voluntarily by two parties or more with the intention of creating a legal obligation, which may have elements in writing, though contracts can be made orally. A contract is a legally enforceable promise or undertaking that something will or will not occur. The word promise can be used as a legal synonym for contract. Although care is required as a promise may not have the full standing of a contract, as when it is an agreement without consideration. Legal Issue

Has Jacko breach the contract between him and London Night Club? Is there a discharge of contract between them? Legal Law
A contract may come to an end or discharged various ways. When a contract is said to be discharged means the right of the others are extinguished. The relevant law of this case is about discharge by impossibility of performance. According to Section 40 of the Contracts Act 1950, when a party to a contract has refused to perform, or disable himself from performing, his promise in its entirety, the promise may could an end to the contract, unless he has signified, by words or conduct, his acquiescence in its continuance.

The relevant law of this case is discharge by impossibility of performance. According to Section 57, there are two categories of impossibility of performance; first, impossibility of performance at the time a contract is made and impossibility after it has been made. The second category concerns contracts that have become impossible to perform subsequent to their making. In the words of section 57(2), a contract ‘becomes impossible, or by reason of some event the promisor could not prevent, unlawful’. This covers the common law doctrine of frustration. The doctrine of frustration provides for the termination of a contract if events occur which radically change the circumstances contemplated by the...
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