Which of the following Is Not an Example of Discharge of a Contract by Agreement

As a professional, it is important to understand the various ways in which a contract can be discharged. One of these ways is through an agreement between the parties involved. However, it is crucial to know which of the following is not an example of discharge of a contract by agreement.

Firstly, it is important to define what discharge of a contract means. Discharge of a contract refers to the termination of obligations and duties that have arisen from a contractual agreement. There are various ways in which a contract can be discharged, including agreement, breach, frustration, performance, and operation of law.

An agreement in the context of contract discharge refers to a mutual understanding between the parties involved that the terms of the contract are no longer valid. It is a voluntary action that results in the termination of the contract. However, there are certain agreements that do not result in the discharge of a contract. Let`s take a look at some examples.

1. Extension of Time

An extension of time agreed upon by the parties involved does not discharge a contract. Instead, it temporarily suspends the obligation until the new deadline is met. For instance, if a contractor and a client agree to extend the deadline for a construction project by two weeks, the contract remains valid until the new deadline is met.

2. Novation

Novation is another agreement that does not result in the discharge of a contract. It involves the substitution of one party in a contract with another. In this case, the original contract is still valid, but the obligations and duties are transferred to the new party. This means that the original contract remains in force until the new party fulfills their obligations.

3. Accord and Satisfaction

Accord and satisfaction is an agreement where the parties involved agree to substitute a new obligation for an existing obligation. This new obligation is intended to satisfy the original obligation. For instance, if a company owes a supplier $1000, but they cannot pay the full amount, they may agree to pay $800 as a full settlement of the debt. In this case, the original contract is not discharged but modified.

In conclusion, it is important to understand the various ways in which a contract can be discharged. Agreement is one of these ways, but it is crucial to know which agreements do not result in the discharge of a contract. An extension of time, novation, and accord and satisfaction are examples of agreements that do not discharge a contract. A professional should be knowledgeable in these legal concepts to ensure that articles are accurate and informative.