ABSTRACT

A contract may contain terms specifying when it will come to an end. It is also possible for a contract to endow one of the parties with the right to discharge the agreement. Discharge by agreement can be divided into two categories: contractual discharge; and non-contractual discharge. On the other hand, where the contract is executed, that is, one party has already performed his or her side of the contract, any agreement to discharge the contract and thereby release that party from the existing obligations must be under seal or be supported by fresh consideration. Discharge by agreement may raise difficult questions when the original contract requires formalities to be complied with. If the contract is one which is required to be made or evidenced in writing, it can be discharged orally, but any variation or new contract in substitution will be unenforceable unless it is in writing or evidenced in writing.