Discharge

In one sentence

The release of a party from their contractual obligations.

Plain English

Discharge happens when a contract ends and both parties are freed from their remaining duties. This can occur when both parties fully perform their obligations, when they mutually agree to end the contract, or when something makes performance impossible (like a natural disaster). Once discharged, neither party can sue the other for failing to complete the contract.

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Example

Sarah agrees to paint Tom's house for $5,000. After Sarah finishes the painting and Tom pays her in full, both are discharged from the contract. Neither owes the other anything more.

Used in a sentence

“When the builder completed the renovation and the homeowner paid the final invoice, both parties were discharged from their obligations.”

Related terms

Contract

A legally binding agreement between two or more parties to do or not do something.

Breach of Contract

Failure to do what a contract requires, without a valid legal excuse.

Force Majeure Event

An unforeseeable, uncontrollable event that prevents contract performance.

Executed Contract

A contract where both parties have fully performed all their obligations.

Waiver

Voluntarily giving up a legal right you're entitled to.

Condition

An event that must happen (or not happen) for a contract obligation to take effect.

Offer

A proposal to enter into a binding agreement on specific terms.

Acceptance

Agreeing to the exact terms of an offer, creating a binding contract.

This page is a plain-English reference and is not legal advice. Laws vary by jurisdiction and change over time. For specific situations consult a licensed attorney.