In terms of contract performance, when does discharge occur?

Discharge of a contract occurs when the parties have fulfilled their obligations as stipulated in the agreement, which is accurately represented in the selected answer. This means that each party has completed their respective parts of the bargain, effectively bringing the contract to completion. When the obligations outlined in the contract are performed, the contractual relationship comes to an end, and the parties no longer have any further legal obligations toward each other under that contract.

The completion of the contract is essential, as it signifies that the parties have met their mutual expectations, and they are free from any further liability or duty as per the contract. This concept is fundamental in contract law, as it provides clarity and closure for the involved parties.

In contrast, simply having a contract signed does not constitute discharge; it is merely the initial step in the contract lifecycle. Similarly, a situation where one party benefits or where one party defaults does not complete the obligations of the contract. Instead, these scenarios often lead to further legal considerations, such as exploring claims for breach or issues of implied or expressed benefits, rather than signifying the fulfillment of the contract itself.