Discharge by Mutual Agreement

Discharge by mutual agreement occurs when both parties in a contract decide to end their agreement before it is fully executed. This can happen if they mutually agree that continuing the contract is no longer beneficial or possible. Both sides may negotiate new terms or simply agree to part ways without penalties. Essentially, it’s a respectful way to resolve a situation where either continuing the contract doesn’t make sense or both parties want to explore different options without any conflict. This approach ensures clarity and a good relationship between the involved parties.