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In which of the ways can a contract be discharged by operation of law?
Unauthorized material alteration contract
Vesting of right and liabilities in the same person
Neither (a) nor (b)
Both (a) and (b)
- Option 1 (Unauthorized material alteration contract): This means if someone makes significant changes to a contract without getting approval from the other party, the contract can be discharged by operation of law.
- Option 2 (Vesting of right and liabilities in the same person): This covers situations like merger, where one person ends up holding both the rights and obligations of a contract. The contract is discharged as a result.
- Option 3 (Neither): This is incorrect because both circumstances can discharge a contract by operation of law.
- Option 4 (Both (a) and (b)): Both options are correct examples of discharge of contract by operation of law.
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