Business Law

Question 4 - Differentiate, in detail, between the ways a contract may be terminated.

The following may help with the answer to the question. Please also do futher research and add in examples. Thank you!

1. Proper performance - If both parties do what they are supposed to do in accordance with the terms/requirements of the contract, the contract will come to an end when it is supposed to end
2. Prescription - A party may be released from obligations with the passage of time. a. Thirty years in respect of- A debt secured by mortgage bond a judgment debt, A debt in respect of any taxation, A debt owed to the state in respect of any share of the profits, royalties or concerning minerals b. Fifteen years in respect of any debt owed to the state and arising from an advance or loan or a sale or lease of land c. Six years for Bill of exchange or negotiable instruments d. Three years for any other debt
3. Impossibility of performance -
4. Merger - Takes place when a person becomes both creditor and debtor in respect of the same obligation,
5. Set-off - Occurs when parties reciprocally owe each.
6. Death - The death of either party to a contract will not usually automatically terminate the contract
7. Insolvency - When assets are less than liabilities. The estate of the insolvent is sequestrated by the court and will be administered by the trustee who is appointed by the Master of the High Court. The Trustee may decide to uphold some contractual agreements and discard some