Type of Discharge of Contract by Means of Agreement

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Discharge of contract by means of agreement refers to the termination of a legal agreement between two parties through mutual agreement. This type of discharge of contract is a common practice in business transactions and other legal agreements.

There are several types of discharge of contract by means of agreement. The first type is Novation. This occurs when one party to the contract is replaced by another party with the consent of all parties involved. The new party assumes all the rights and obligations of the original party, and the original party is released from their obligations under the contract.

The second type of discharge by agreement is Accord and Satisfaction. This occurs when both parties agree to change the terms of the contract. For example, if one party owes the other party money, the parties may agree to accept a lesser amount of money in full settlement of the debt.

The third type of discharge by agreement is Release. This occurs when one party agrees to release the other party from any further obligations under the contract. For example, if a tenant agrees to release a landlord from any further obligations under a lease, the lease would be terminated.

The fourth type of discharge by agreement is Rescission. This occurs when both parties agree to terminate the contract and return to their pre-contractual position. For example, if two parties agree to enter a contract to purchase a car, but then decide to rescind the contract, the car would be returned to its original owner, and any money exchanged would be returned.

The fifth and final type of discharge by agreement is Waiver. This occurs when one party voluntarily gives up their right to enforce a term of the contract. For example, if a seller agrees to waive their right to require a certain amount of money upfront, they cannot later enforce that term of the contract.

In conclusion, discharge of contract by means of agreement is a common practice in business transactions and other legal agreements. There are several types of discharge by agreement, including Novation, Accord and Satisfaction, Release, Rescission, and Waiver. Understanding these types of discharge can help parties to contracts to effectively and efficiently terminate their agreements.