The termination of a contract's duties and obligations is referred to as discharge of a contract. It marks the end of the contractual connection and absolves the parties of their obligations under it. Various mechanisms, such as performance, agreement, violation, frustration, or operation of law, might result in discharge. The most frequent method of contract termination is performance, which occurs when both parties carry out their responsibilities as specified in the contract. The parties are liberated from future responsibilities upon fulfilment of the conditions of the agreement, and the contract is deemed discharged. A contract may be discharged by agreement between the parties. They may jointly elect to rescind the contract via a procedure known as mutual rescission or by replacing the old contract with a new one. A breach of contract happens when one party doesn't carry out their commitments without a valid justification. In certain situations, the innocent party has the option to end the agreement, seek compensation for the violation, and discharge both parties from future responsibilities.
