Understanding the Discharge of Contract in Legal Disputes

Explanation

In this scenario, the reason for the discharge of contract is the unilateral decision by Candy to terminate the contract despite her earlier agreement to sell the lakeside property to Randy. Randy's legal recourse is to sue for breach of contract to enforce the original agreement.

Contracts are binding legal agreements between parties, and they include the provision of remedies in the event of non-compliance. When Candy received a better offer and decided to terminate her contract with Randy, she infringed upon Randy's contractual rights, which are based on property rights. According to Coase's theorem, these rights should be well-defined; essentially, they are the legal rights of ownership which others cannot infringe upon without compensation. Therefore, by attempting to terminate the contract, Candy has potentially violated Randy's property rights to the lakeside property as defined by their initial agreement.

Randy's lawsuit against Candy seeks to retain the rights promised to him by the contract. This could result in the court ordering specific performance, compelling Candy to adhere to the contractual agreement and proceed with the sale as originally agreed. Alternatively, Randy may be awarded damages for the loss incurred due to Candy's attempt to breach the contract.