When parties enter into a contract, they expect the terms to be fulfilled. However, there may come a time when one or both parties wish to terminate the agreement. This could be due to various reasons, such as a breach of contract or a change in circumstances. In such situations, it is important to be aware of the ways in which a contract can be discharged or terminated. Here are five such ways:

1. Performance

This is perhaps the most straightforward way in which a contract can be discharged. If both parties fulfill their obligations as per the terms of the agreement, the contract is said to be performed. At this point, the contract comes to an end and no further obligations exist between the parties.

2. Breach

If one party fails to fulfill their obligations as per the terms of the agreement, it is considered a breach of contract. In such situations, the other party may be entitled to terminate the contract. This could be done through legal channels, such as filing a lawsuit or arbitration. Alternatively, the contract itself may outline the consequences of a breach, which could include termination.

3. Mutual agreement

Sometimes, both parties may agree to terminate the contract before it is completed. This could be due to various reasons, such as a change in circumstances or a desire to pursue other opportunities. In such situations, it is important to document the agreement to terminate the contract. This could be done through an addendum or a new contract outlining the terms of termination.

4. Frustration of purpose

In some cases, a contract may become impossible to perform due to unforeseen circumstances. This could be due to events such as natural disasters, changes in law, or the death of a key party. In such situations, the contract may be considered frustrated, and both parties would be released from their obligations.

5. Impossibility

Finally, a contract may be terminated if it becomes impossible to perform due to factors beyond the control of either party. This could include situations such as the destruction of property that was the subject of the contract, or the death of a party who was integral to the fulfillment of the agreement. In such situations, the contract would be considered terminated and both parties would be released from their obligations.

In conclusion, contracts are important agreements that formalize the obligations of parties involved. However, situations may arise where one or both parties wish to terminate the contract. It is important to understand the different ways in which a contract can be discharged or terminated, in order to ensure that the termination is legal and documented in a manner that protects the interests of all parties involved.