Question

Once a party has entered into a binding agreement, how does the party terminate his or her obligation under the contract? A. When a party's obligations under a contract are terminated, the party is said to be discharged. B. There are a number of ways by which a party's contractual obligations can be terminated and the party thereby discharged.

Answer 1

B. There are a number of ways by which a party's contractual obligations can be terminated and the party thereby discharged.

Step-by-step explanation:

The number of ways or reasons that a party's contractual obligations can be terminated and the party thereby discharged. Some of the reasons are:

1. Discharge by performance: When the obligations in the contract has been performed, party can be discharged.

2. Prior Agreement To Terminate: Party can be discharged if the parties involved have come to an agreement to terminate the contract.

3. Impossibility of Performance: If one party has discovered that he is unable to perform the obligations, there is a call for termination.

4. Breach of contract