When one or both parties to a contract fail to perform according to its terms, the contract is said to be discharged by non-performance. This means that the contract has not been fulfilled as agreed upon by the involved parties. Here's a breakdown:
1. Discharged by non-performance: This term refers to the situation where the parties do not meet their obligations under the contract. It can lead to legal consequences such as the non-breaching party seeking damages or termination of the contract.
In the given options:
- OA. Discharged by non-performance is the correct answer that describes the situation when one or both parties fail to perform according to the terms of the contract.
- B. Invalid would indicate that the contract is not legally binding, which is not the case in this scenario.
- OC. Illegal would mean the contract is against the law, which is different from non-performance.
- OD. Mitigated refers to reducing the severity of something, not the same as non-performance.
- E. Revoked means to officially cancel something, not directly related to failing to perform in a contract context.
