Which Is Not Considered a Discharge of Contractual Obligations by Agreement Quizlet
As a professional, I have come across many articles related to contractual obligations. One question that frequently arises is, “What is not considered a discharge of contractual obligations by agreement?” This question is often found in online platforms, such as Quizlet, where students find useful information to aid their studies. In this article, we will explore the answer to this question.
Firstly, it is essential to understand what contractual obligations are. A contractual obligation is a promise or a set of promises that two or more parties agree to perform. These promises can be express or implied and can be formed in various ways, such as in writing, orally, or through conduct. Once a contract is formed, each party has a duty to perform their obligations under the terms of the contract.
Contracts can come to an end in several ways, such as performance, breach, or agreement. One way to discharge a contract is by agreement. However, not all agreements will discharge a contract. The following are examples of what is not considered a discharge of contractual obligations by agreement:
1. Waiver of breach: A waiver of a breach of contract does not discharge contractual obligations. A waiver is a voluntary and intentional relinquishment of a right. If a party waives their right to enforce their rights under the contract, the other party`s obligations remain valid.
2. Novation: Novation is a type of agreement where a new contract replaces an existing contract. However, novation does not discharge the original contractual obligations. Instead, the parties agree to substitute the original party or obligation with a new one.
3. Accord and satisfaction: Accord and satisfaction is a type of agreement where parties agree to settle a debt dispute by accepting a less amount than what was originally owed. However, accord and satisfaction only discharge the obligations that are the subject of the agreement.
4. Agreement to rescind: An agreement to rescind is when parties agree to cancel the contract. However, an agreement to rescind does not discharge any obligations that have already been performed. The parties must still fulfill any duties performed before the rescission.
In conclusion, contractual obligations can come to an end through performance, breach, or agreement. However, not all agreements will discharge a contract. Waiver of breach, novation, accord and satisfaction, and an agreement to rescind are examples of what is not considered a discharge of contractual obligations by agreement. It is important to understand these concepts when dealing with contracts to ensure that parties fulfill their obligations under the terms of the contract.