Chapter VI. Discharge of Contract

THE obligation arising from a contract may cease to exist in several ways:

By mutual agreement, by which each party renounces his rights under the contract. Cessation of contract by merger of one in another, or by substitution of one for another, may be classed under this head.

A contract ceases by performance when each party has wholly performed his duty under it.

When a contract consists of reciprocal promises, and one party fails to perform, or clearly expresses an intention not to perform, or disables himself from performing his promise, the other party may, at his option, treat the contract as at an end, and it is thereby discharged. Failing this, the injured party continues liable to perform his part, but he may claim damages for breach of contract by the other.

A contract which has for its object the rendering of a personal service is discharged by the death or incapacitating illness of the promisor.

There is no prescription against the obligation of a contract in English law, but a trustee in bankruptcy may repudiate the contracts of the bankrupt if they appear to be unprofitable.