Bringing A Commercial Contract To An End

A contract is usually discharged when both parties have performed all of their obligations under the agreement and thus both parties have fulfilled what they promised to do at the very outset of the contract. There is a distinction to be drawn between the discharge of a valid contract and the ways in which invalid contracts come to an end. 

This article assumes that a commercial contract has been properly formed and one of the parties wishes to terminate the contractual relationship. If you are looking for a commercial contractor, you can visit

There are somevways in which a contract may be discharged.

1. Discharge by performance

Discharge by performance is where both parties to a contract have performed all their primary obligations under the contract, including all express and implied terms. There are three elements required to be satisfied to say, at law, that performance is complete.

Tender of performance takes place when a party attempts to perform their primary obligations under the contract and is prevented from doing so by the other party. 

It is this that discharges the parties' obligations. When a party tenders performance that is refused by the other party, they may sue for breach of contract.

2. Discharge by agreement

Where both parties consent, the mutual obligations to perform contractual obligations will come to an end. Where a contract is discharged in this way, as with any contract, the agreement must be supported by consideration be legally binding. 

Where both parties have performance obligations outstanding under a contract, an agreement between the parties to discharge those obligations will be enough to satisfy the requirement for consideration, making it legally binding.