Discharge by Operation of Law

Discharge by operation of law refers to the automatic termination of a contract or obligation due to certain legal events or circumstances. This can happen, for example, if a party becomes bankrupt, if the contract is deemed illegal, or if the terms of the contract become impossible to fulfill. In these situations, the law recognizes that it would be unfair to hold parties to their commitments, so the obligations are canceled without needing the agreement of both parties. Essentially, the law steps in to relieve parties from their duties under specific conditions.