Contracts and Sales Multistate Bar Practice Exam

What is a main requirement for a discharge by release from contractual duties?

1. The release must be oral and witnessed

2. The release usually must be in writing and supported by consideration

3. The release must be agreed upon without any conditions

4. The release can be implied without explicit agreement

The correct answer is: The release usually must be in writing and supported by consideration

A main requirement for a discharge by release from contractual duties is that the release usually must be in writing and supported by consideration. This is because a release effectively represents an agreement where one party relinquishes the right to enforce a contract, and, as a rule, such agreements benefit from being documented in writing. This written form adds a layer of clarity and prevents misunderstandings about the parties' intentions. Additionally, consideration is vital because it ensures that both parties acknowledge the terms of the release and that the releasing party receives something of value in return. Without consideration, the release may lack enforceability, as it could be viewed as a mere gratuitous promise that the law does not typically uphold. While verbal releases can be valid in some circumstances, the formal requirement of writing and consideration helps to provide a stronger legal foundation for such agreements, minimizing disputes about their existence or terms.