STUDY UNIT: TERMINATION OF OBLIGATIONS

Question 1

THREE TYPES OF TERMINATIONS:

Answer 1

1. Termination by performance
2. Termination by agreement
3. Termination by operation of law

Question 2

1. Termination by performance:

Answer 2

an obligation under a contract terminates when a debtor performs as agreed.

Question 3

REQUIREMENTS OF TERMINATION BY PERFORMANCE:

Answer 3

1. Required performance
2. Performance by a third party
3. The person to whom performance must be made
4. Place of performance
5. Time of performance
6. Performance as a bilateral act

Question 4

1. REQUIRED PERFORMANCE:

Answer 4

only full and proper performance will terminate the obligation.

Question 5

2. PERFORMANCE BY A THIRD PARTY:

Answer 5

the obligation may also be terminated where a third party performs with the intentions of performing on behalf of the debtor.

Question 6

3. THE PERSON TO WHOM PERFORMANCE MUST BE MADE:

Answer 6

performance must be ordinarily made to the creditor.

Question 7

4. PLACE OF PERFORMANCE:

Answer 7

performance must be at a place agreed upon by the parties

Question 8

5. TIME OF PERFORMANCE:

Answer 8

may also be agreed upon expressly or tacitly

Question 9

6. PRFORMANCE AS A BILATERAL ACT:

Answer 9

an obligation to do something or to give something is generally a bilateral act.

Question 10

2. TERMINATION BY AGREEMENT:

Answer 10

1. Release and waiver
2. Novation
3. Compromise
4. Notice
5. Effluxion of time

Question 11

1. RELEASE AND WAIVER:

Answer 11

• a release is an express or tacit agreement that the debtor be freed from an obligation or obligations.
  -a waiver is used to denote a unilateral act of abandoning a right or a remedy that exits for the sole benefit of the party abandoning the right or remedy

Question 12

2. NOVATION:

Answer 12

is an agreement to terminate and replace one or more existing obligations with a new obligation.

Question 13

3. COMPROMISE:

Answer 13

is an agreement in terms of which parties settle a dispute between themselves.

Question 14

5. EFFLUXION OF TIME:

Answer 14

if a contract fixes a specific period for its duration, it terminates automatically at the end of such period.