In which of the following situations would the contract not be discharged by agreement?
A) Both parties agree to let a new person be substituted into the contract in place of one of the old parties.
B) Both parties agree to call off the contract under which one paid the other $5,000 for work that has not yet been performed, but the other now promises to return the $5,000.
C) Both parties to the contract agree to call it off before either one has performed.
D) A condition subsequent that calls for termination of the contract has not been met.
E) The two parties have reached "accord and satisfaction" with regard to terminating the contract.

Question

Quizplus · Accepted Answer

In this situation, the contract would not be discharged because a condition subsequent that calls for termination of the contract has not occurred. In order for the contract to be discharged by agreement, both parties must come to an agreement to end the contract. However, if a condition subsequent exists in the contract, such as termination upon the occurrence of a certain event, then the contract will only be discharged if that event actually occurs.

In Which of the Following Situations Would the Contract Not