Question

Clyde contracts with Deephole Excavation, Inc., to dig an agricultural pond on his farm. Deephole is to keep the excavated gravel in payment. Clyde's neighbor Eden challenges the dig as an illegal gravel pit. A court orders a halt to the dig. Clyde's contract with Deephole is:

a. Breached
b. Discharged
c. Not affected
d. Suspended

Answer 1

Answer is option b i.e. Discharged.

Step-by-step explanation:

Discharge of a contract takes place either on completion of a contract or when a contract is terminated due to various reasons like; discharge by mutual agreement, discharge by the impossibility of performance, discharge of contract due to lapse of time, discharge by operation of law, and discharge by breach of contract. Here, in the given case, the contract between Clyde and Deephole Excavation Inc. is discharged by the operation of law as the court has ordered to halt the digging further.