| law |
discharge by agreement or consent (Discharge by Agreement or Consent – Contracts may also be discharged if both parties mutually agree to release one another from the contractual obligations. There are two main scenarios that lead to this happening. First, neither party is able to fulfil their contractual obligations — which is relatively a straightforward process as both parties will generally agree to release each other from the contract as it serves both of them equally to do so.
However, things get more complicated when one party has already fulfilled their end of the contract, while the other party has not. In such cases, a form of consideration is required in order to discharge the contract through mutual agreement.
To properly discharge a contract by agreement, it is essential to create a separate contract that clearly outlines the new consideration being provided. This ensures that the agreement to discharge the original contract is explicitly stated and legally recognised.
Example of Discharge by Agreement or Consent:
A software development company and its client agree to end the contract prematurely due to changing project requirements, understanding that the original scope is no longer feasible.: Прекращение обязательства по соглашению сторон. Согласно п. 3 ст. 407 ГК стороны своим соглашением вправе прекратить обязательство и определить последствия его прекращения, если иное не установлено законом или не вытекает из существа обязательства. 'More) |
