Discharge by Performance and by Agreement

Discharge by performance is the most straightforward mode — once both parties have done exactly what they promised (or, where relevant, a valid tender has been made and refused), the contract stands discharged and neither party has any further claim against the other under it.

Discharge by mutual agreement covers the five mechanisms already introduced in the previous chapter, which bear repeating briefly here as a recognised MODE of discharge:

• Novation — substituting a new contract for the old one.
• Rescission — the parties mutually agreeing to cancel the contract, without any new contract taking its place.
• Alteration — changing one or more terms of the same contract, by mutual consent.
• Remission — the promisee accepting a lesser fulfilment than originally agreed, or excusing performance, without needing fresh consideration.
• Waiver — a party voluntarily giving up their right to demand performance. …