Discharge by Lapse of Time and by Operation of Law

Discharge by lapse of time: the Limitation Act prescribes a fixed period within which a party must bring a legal action to enforce their contractual right; if that period expires without the right having been enforced or acknowledged in writing, the remedy through a court of law is barred — the party can no longer sue on the contract, though the underlying obligation is not automatically wiped out (e.g. it may still support a fresh, written promise to pay, covered as an exception to "no consideration, no contract").

Discharge by operation of law: this covers situations where a contract is discharged independently of the parties' own choice, due to a rule of law rather than an act of either party:

• Death of a party — where the contract is of a personal nature (requiring the deceased's own skill/services), it is discharged on their death; otherwise, the contract's rights and liabilities generally pass to the deceased's legal representatives.
• Insolvency — when a party is declared insolvent, their rights and liabilities under existing contracts generally pass to an official receiver/assignee appointed to administer their estate, and the original contract as against that party is discharged. …