A contract is said to be ended, no longer binding between the parties, or discharged under the following circumstances:
Discharge by performance: When the parties involved in the contract hs made the decision to fulfil contractual obligations, it is called discharge of contract by performance. The performance of one party triggers the performance of another person.
Discharge of contract by substituted agreement: When the existing contract gets deserted, or the terms of the existing contract are altered with mutual acceptance by both parties, there is a discharge of the existing contract by substituted agreement. Agreement discharge may happen through Novation, Rescission, Alteration and Waiver.
Discharge by lapse of time: A contract shall remain discharged if it is not enforced within a definite period called the period of limitation.
Discharge by operation of law: When either party involved in a contract makes changes or alterations to the written agreement, the other party can consider the contract to be discharged due to unauthorized material alteration made to the agreement.
Discharge by impossibility of performance: After a contract is established between the parties, certain actions can occur, which makes the contract unable to be performed further. There is no fault on either party, but the contract may turn to be illegal or impossible to be performed. Hence the contract is discharged due to the impossibility to perform further.
Discharge by accord and Satisfaction: When parties involved in the contract accept to performance which is other than the originally accepted performances, the contract is discharged by accord, and Satisfaction.
Discharge by the breach: When either party involved in the contract fails to carry out his or her performance, delivers a subpar performance or does not perform as per the contractual obligations, the other party can discharge the contract due to breach.
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