ABSTRACT
This chapter focuses on discharge of contract by agreement, performance, and breach. Most contracts are discharged by performance. Obligations under a contract may also be discharged by the agreement of the parties. A situation of bilateral discharge is one where both parties have obligations as yet unperformed under the contract. A simple agreement to discharge all remaining obligations where both parties have obligations to surrender will comply with the requirement in Dunlop v Selfridge of consideration moving from both parties. Unilateral discharge is more problematic for the parties because it occurs in situations where only one party has obligations to perform. When considering whether a party to a contract has performed his obligations, attention must also be paid to whether the standard of performance required has also been complied with. There may be circumstances in which a party to the contract has attempted to perform obligations under the contract, but is prevented from doing so by the other party.
