If a contract is to be issued by operation of law, it means a change in daily activities leads to the breach of contract. It is majorly observed in corporations. We have three different reasons to discharge the contract by the operation of law. They are by alteration of a written document which fails to perform the obligations in the specific time, by merging the company happens when a big company equals or take over the existing company and due to insolvency means the lack of financial Capital leads to the bankruptcy which results in a discharge of a contract.