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Discharge by Performance: Contract

Performance of the parties can trigger a discharge from the contract. This is what we call discharge by performance. This comes in 3 forms:

1. Complete performance: This is quite straightforward. If the performance promised in a contract is fulfilled without a single defect then the people who agreed to it are freed from the contract. Unfortunately, it is not so easy to reach the wholeness. That is why, the second one below is given more priority by the law.

2. Substantial performance: Substantial means sizable. To evaluate whether substantial performance is satisfied a party must show fulfillment of most terms found in the contract. The second thing he must prove is that his attempt to carry it out was genuine. Lastly, he never had any intention to dishonor the contract. Yet if some kind of failure occurs due to not satisfying other requirements stated in the contract the law can compel the sued party to pay money to the plaintiff.    

3. Performance Subject to Satisfaction of a Contracting Party: This is all about satisfactory performance. In other words, a person is discharged from the contract only after he shows that his performance is fully satisfactory. Of course, the other party receiving it judges him. For this, he can choose between subjective and objective evaluation methods.

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