Contract Law - Discharge and Variation

Question 1

Discharge by Agreement

Answer 1

Agreement constitutes a new contract so requires all of the elements of a contract including consideration

Giving up a right or agreeing to do something new is consideration. However, if a party has performed all of their obligations under a contract they have nothing to give up and cannot give consideration.

Otherwise agreement will need to be by deed.

Question 2

Discharge by Performance

Answer 2

Parties performing all of their obligations under the contract

Question 3

Entire Obligations Rule

Answer 3

Exceptions:

Substantial Performance

Divisible Contracts

Question 4

Quantum Meruit

Answer 4

Fixing payment outside the contract