What does it mean to discharge a contract by agreement?

Discharging a contract by agreement occurs when both parties mutually agree to terminate their obligations under the contract before they are fully executed. This means that both sides have discussed and consented to forgo the completion of the contract’s terms. Option B reflects this concept accurately, as it emphasizes the mutual decision not to complete the contract.

In practical scenarios, parties may choose to discharge a contract by agreement for various reasons, including changes in circumstances, a desire to avoid further obligations, or simply reaching a consensus that pursuing the contract is no longer beneficial or feasible. This mutual consent can lead to a variety of outcomes, such as negotiating a settlement or agreeing to the terms of the early termination.

The other options presented do not align with the concept of discharging a contract by agreement. For example, fulfilling contractual obligations is contrary to the idea of discharging the contract. The notion that one party must complete their obligations before discharge implies that a contract could only be terminated after some performance, which deviates from the mutual agreement context. Finally, the requirement for discharge to be in writing is not a universal rule; oral agreements are also valid, provided there is mutual consent, unless specified otherwise by the statute or the nature of the contract itself.