| Contract law |
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| Formation |
| Defences |
| Interpretation |
| Dispute resolution |
| Rights of third parties |
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In contract law, extinguishment is the destruction of a right or contract.[1] If the subject of the contract is destroyed (such as through merging the contract subject and the contract obligation), then the contract may be made void.[1] Extinguishment occurs in a variety of contracts, such as land contracts (common, copyhold), debts, rents, and right of ways.[1] A right may be extinguished by nullifying that right or, in the case of a debt, discharged by payment in full or through settlement.[2]
An extinguishment may be by matter of fact and by matter of law.[1] If a creditor receives satisfaction and full payment of a debt and the creditor releases the debtor, then that is express extinguishment by matter of fact.[1] If a person is renting land and subsequently becomes the owner of that same land by purchase or descent, the rent is extinguished through implied extinguishment by matter of fact.[1]
There are numerous situations where a claim is extinguished by operation of law.[1] If two persons are jointly but not severally liable for a simple contract debt, a judgment at common law obtained against only one of the debtors works as an extinguishment of the claim on the other debtor as a matter of law.[1] A conveyance of mortgaged land by the mortgagor to the mortgagee extinguishes the mortgage.[1] However taking a promissory note for the amount due on the mortgage does not deprive the mortgage holder of a right to a lien, but merely suspends its enforcement until the note is payable.[1]
- ^ a b c d e f g h i j Rawle, Francis; Bouvier, John. (1914) Bouvier's Law Dictionary and Concise Encyclopedia Extinguishment. Pp. 1166-1167. 3rd revision (being the 8th ed.) Vernon Law Book Co. ; St. Paul, Minnesota. Publisher: West Publishing Company. 3 vols.
- ^ Dictionary.com (2008) Extinguishment. Accessed June 16, 2008