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Five Reasons to Discharge Contracts | Contracts are a means to an end, not an end in themselves. They represent a promise to do something or to refrain from doing something. When both parties to a contract fulfill their promises, the contract has served its purpose and is terminated or discharged.However, if one or more of the parties to a contract are unable to perform what they promised and there is no legal excuse for this inability to perform, there is a breach of the contract. There are five valid reasons to terminate, or discharge, contracts. These five reasons are discussed below.1. Material breach
Material breach occurs when one party to a contract doesn't fulfill the essential terms of the contract. It is so-called because it occurs when the contract is not met in a material way. It goes against the terms of the contract and has a material impact on the other party. This discharges the other party from its contractual obligations. Consequently, the other party may have grounds to sue for damages.2. Minor breach
Minor breach occurs when the essential terms of the contract have been fulfilled but the other party is inconvenienced rather than suffering loss or damages. The nonbreaching party still has contractual obligations, but could suspend performance of the contract.3. Anticipatory breach
Anticipatory breach occurs if one of the parties to the contract states, before the breach occurs, that it will not be able to fulfill its contractual obligations. Anticipatory breach also can occur when the actions of one of the parties imply that it won't be able to fulfill its contractual obligations.In cases of anticipatory breach, the other party doesn't have to wait until the contract is actually breached. As soon as the party is told of the anticipated breach or sees implications that a breach will occur, it can act accordingly.4. Mutual rescission
Mutual

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