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In which of the ways can a contract be discharged by operation of law? This is a common question asked on multiple choice exams related to contract law. As a professional, let`s dive into the various ways a contract can be discharged by operation of law.
1. Breach of contract: This is the most common way a contract is discharged by operation of law. If one or both parties fail to perform their obligations under the contract, the contract is considered breached and is no longer enforceable. The non-breaching party may seek damages for the breach, but the contract is considered terminated.
2. Frustration of purpose: If an event occurs that makes it impossible for the parties to fulfill the purpose of the contract, the contract is considered frustrated and is no longer enforceable. For example, if a contract is made for a concert, but the venue burns down before the concert can take place, the contract is frustrated.
3. Impossibility of performance: If it becomes impossible for one or both parties to perform their obligations under the contract, the contract can be discharged. For example, if a contract is made for the sale of a specific car, but the car is destroyed before it can be delivered, the contract is considered impossible to perform.
4. Operation of law: There are certain legal actions that can cause a contract to be discharged, such as bankruptcy or death. If one of the parties to the contract is declared bankrupt, the contract is automatically terminated. If one of the parties dies, the contract may be terminated unless the contract specifies otherwise.
5. Lapse of time: If a contract has a specific end date and that date passes without the contract being fulfilled, the contract is considered discharged by operation of law. This is also known as the statute of limitations.
In conclusion, there are several ways a contract can be discharged by operation of law. These include breach of contract, frustration of purpose, impossibility of performance, operation of law, and lapse of time. It is important to understand these concepts when studying contract law and preparing for multiple-choice exams.