Contracts may be discharged (obligations destroyed) by acts of the parties. Both parties may agree to abandon a contract they have made. Or if one party fails to do his part the other is not compelled to do his, and may sue the first party for his failure. Where one party promises never to sue the other if he does not do his part, this is equivalent to releasing the other party. Both parties may agree to substitute a new agreement for the old one. The contract may itself say that either party may abandon it within a certain time. When either party does what he has promised to do he is discharged. A contract may also be discharged because when it was made it was impossible for one or both of the parties to do what they promised. When it becomes impossible after the contract is made to do what was agreed on, the contract will not be discharged except:

(a) Where a change in the laws or some act of law makes it impossible legally to do what was agreed.

(b)When the existence of a specific thing is necessary, its destruction will discharge the contract, unless, of course, one of the parties was to blame. Thus, A agrees to rent a hall to B. The hall burns down before the time when B was to occupy it. The contract is discharged.

(c) When one party has agreed to work for another, the death or disability of the one who has agreed to do the work will discharge the contract.

A person may be discharged by being declared a bankrupt.