TERMINATION BY OPERATION:

Question 1

TERMINATION BY OPERATION OF LAW:

Answer 1

1.Set-off
2. Merger
3. Prescription
4. Insolvency
5. Death
6. Supervening impossibility of performance

Question 2

1. SET-OFF:

Answer 2

occurs when two parties have claims against each other.

Question 3

REQUIREMENTS OF SET-OFF:

Answer 3

1. the debts must exist between the same two persons in the same capacities
2. the debts must be of the same kind
3. Both debts must be due and enforceable
4. Both debts must be liquidated.

Question 4

2. MERGER:

Answer 4

occurs when one person becomes both the creditor and the debtor in respect of a certain debt.

Question 5

3. SUPERVENING THE IMPOSSIBLITY OF PERFORMANCE:

Answer 5

impossibility arises after the conclusion of the contract.

Question 6

REQUIREMENTS:

Answer 6

1. the performance must be objectively impossible
2. the impossibility must be unavoidable by a reasonable person.