Law of Contract (Discharge and remedies)

• When a contract is terminated, it is said to be discharged and the contracting parties are free from further obligations arising from it.
• A contract that is created by consent can be discharged by consent.
• The effect of novation is to release the obligation of the parties under the earlier contract. A contract is said to be discharged when the parties to the contract has performed what they have agreed to do in the contract.
• An agreement to do an act impossible in itself is void.
• An injured party is entitled to damages arising naturally resulting from the breach.
• A claim for special damages requires the party to show that the other party knows that the special loss is likely to result from the breach.
• There is a general duty requiring that reasonable steps must be taken to mitigate losses flowing from a breach.
• Specific performance is a discretionary remedy granted by the court.
• Injunction as a remedy is classified as ‘Preventive Relief’.