Which of the following is a discharge of a contract?

• A. Performance
• B. Breach
• C. Agreement
• D. Frustration

Answer: (A)

Discharge happens when the duties under a contract come to an end. The easiest and most straightforward way this happens is by performance: when both sides do what they promised, there is nothing left to do, so the contract ends and the parties are released from further obligations. A breach, mutual agreement to end the contract, or frustration can also end a contract, but they operate in different ways. A breach is a failure to perform which may lead to remedies or termination, not automatic discharge simply by performing no more obligations. An agreement to end the contract is a separate mechanism—mutual rescission. Frustration occurs when an unforeseen event makes performance impossible or illegal, also ending the contract, but through circumstances rather than fulfilment. The clearest example of discharge from the options is the act of performing the promises.