Question

A contract is discharged by operation of law except _____________.

• A. Merger
• B. Death of the promiser
• C. Insolvency
• D. Illness of the parties

Answer 1

The correct option is D Illness of the parties

A contract is discharged or terminated by operation of other laws in the following cases:

• Merger implies coinciding and meeting of an inferior and superior right on one and the same person. In such a case inferior right available to a party under an agreement will automatically vanish.
  
• In case a contract is of a personal nature, the death of the promisor will discharge the contract. In other caes, the rights and liabilities of the deceased person shall pass to his legal representatives.
  
• By complete loss of evidence of the existence of the contract.
  
• By insolvency as an insolvent is released from performing his part of the contract by law. Order of discharge, however gives a new lease of life to the insolvent and he is discharged from all obligations arising from all his earlier contracts.