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A contract is a legally binding agreement between two or more parties that outlines the terms and conditions of their relationship. However, there are sometimes circumstances that can lead to the termination of a contract, and one such circumstance is remission.

Remission refers to the act of giving up or releasing a right or claim that one has against another party. In the context of a contract, remission can result in the discharge of the contract. In this article, we will explore the concept of remission and how it can lead to the discharge of a contract.

MCQ: What is remission?

A. The act of enforcing a right or claim

B. The act of giving up or releasing a right or claim

C. The act of renegotiating the terms of a contract

D. The act of terminating a contract

The correct answer is B. Remission refers to the act of giving up or releasing a right or claim that one has against another party.

Remission and the Discharge of a Contract

A contract can be discharged in various ways, including performance, breach, impossibility, frustration, and mutual agreement. Remission is another way that a contract can be discharged.

When one party gives up a right or claim that they have under the contract, the other party is released from their corresponding obligation. For example, if Party A agrees to pay Party B a certain amount of money for a service, but then Party B remits the payment, Party A is released from their obligation to pay.

Remission can be express or implied. Express remission occurs when a party explicitly gives up their right or claim under the contract. Implied remission occurs when a party`s actions indicate that they have given up their right or claim under the contract.

MCQ: What is express remission?

A. Remission that is indicated through a party`s actions

B. Remission that is explicitly stated by a party

C. Remission that occurs due to impossibility

D. Remission that results from mutual agreement

The correct answer is B. Express remission occurs when a party explicitly gives up their right or claim under the contract.

For example, if Party A agrees to pay Party B a certain amount of money for a service, but then Party A explicitly tells Party B that they no longer have to provide the service, this is express remission.

On the other hand, if Party A agrees to pay Party B a certain amount of money for a service, but then Party A hires another party to perform the service, this is implied remission. Party A`s actions indicate that they have given up their right to receive the service from Party B.

Conclusion

In conclusion, remission is the act of giving up or releasing a right or claim that one has against another party. In the context of a contract, remission can result in the discharge of the contract. A contract can be discharged by remission when one party gives up a right or claim that they have under the contract, which releases the other party from their corresponding obligation. Remission can be express or implied, depending on whether it is explicitly stated or indicated through a party`s actions. As with any legal matter, it is important to seek professional advice when dealing with the discharge of a contract by remission.