Discharge of a Contract Occurs When

question 24

Multiple Choice

Discharge of a contract occurs when:

• A)the parties have no further obligations to each other
• B)the parties to the contract mutually agree to the obligations being brought to an end, even if the promises made under the contract had not been completed
• C)all the parties have done exactly what they were required to do under the terms of the agreement
• D)the promises the parties have made have come to an end
• E)All of the above

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Definitions:

Holder in Due Course

A legal term referring to a person who has received a negotiable instrument in good faith and for value, enjoying certain protections against defects in the instrument and prior claims.

Promissory Note

A financial instrument containing a written promise by one party to pay another party a definite sum of money either on demand or at a specific future date.

Good Faith

Good faith refers to an honest intention to act without taking an unfair advantage over another party, often used to denote sincerity in negotiations or in fulfilling contractual obligations.

Failure of the Forklift

Failure of the forklift refers to the breakdown or malfunctioning of a forklift vehicle, which can impact operations, primarily in warehousing and logistics.