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l How to identify whentime is important in acontractl How to distinguishbetween satisfactoryand substantialperformancel How to explain tenderof performancel How to explain howcontracts can bedischarged byagreementUnderstanding whencontracts come to anend will help youdetermine your legalrights and obligationsin such situations.l dischargedl performancel complete performancel reasonable timel substantialperformancel tenderl legal tenderl mutual releasel accord and satisfactionPerformance andAgreementEnding a ContractWhen contracts eventually end, they are said to be discharged . Theparties to the contract may enforce their rights and must perform theirduties up to the time of discharge. The law specifies how contracts endso that people will know when their rights and duties expire. In thissection, we will see that contracts can be discharged by performanceand by agreement.Discharge by PerformanceMost contracts are discharged by performance , meaning theparties fulfill the terms of the contract by doing what they promisedearlier. As long as all terms have been carried out properly and completely,the contract is discharged by complete performance .Time for PerformanceThe time for completing a contract may be important to one or bothof the parties. If the time for performance is not stated in a contract andthere is a question of performance, the court will say that the actions orduties associated with the contract must be completed within areasonable time . A reasonable time will vary with the circumstancesof each individual case. However, it is generally defined as the time thatis suitable, fair, and proper to the objective in view. For example, theSUBSTANTIALPERFORMANCESometimes smalldeviations occur whena long and involvedconstruction contractis entered into byvarious parties. Whathappens if there is aslight deviation fromthe original terms ofthe constructioncontract?224 Unit 2: Entering Into Contracts