Question

which of the following may not result in discharge of a contract by operation of law?
multiple choice
○ alteration of the contract
○ bankruptcy
○ mutual rescission
○ objective impossibility of performance
○ frustration of purpose

Explanation:

To determine which option does not result in discharge by operation of law, we analyze each:

• Alteration of the contract: Can discharge the original contract by law as it modifies terms, affecting enforceability.
• Bankruptcy: Discharges contractual obligations related to debts via legal process.
• Mutual rescission: This is a discharge by mutual agreement (consent of parties), not operation of law. It requires both parties to agree to cancel the contract, unlike the others which are triggered by legal rules/circumstances.
• Objective impossibility of performance: Discharges the contract by law when performance becomes impossible due to external, unforeseeable events.
• Frustration of purpose: Discharges by law when the contract’s purpose is frustrated due to unforeseen events.

Answer:

C. Mutual rescission