Under what condition is an innocent party discharged from a contract?

An innocent party is discharged from a contract upon the material alteration by another party without consent. This situation arises when one party unilaterally makes significant changes to the terms of the contract that fundamentally affect the agreement's value or obligations. When this occurs, the innocent party has a right to consider the contract void because consent to the original terms has been undermined.

Material alterations can include changes in the payment terms, the scope of work, or deadlines, which all can substantially shift the contractual relationship. Without the innocent party’s agreement to these changes, the integrity of the original contract is compromised, and they may choose to exit the agreement without penalization. This principle is grounded in contract law to protect parties who enter into agreements with the expectation that the terms will remain stable unless mutually agreed otherwise.