Which is NOT one of the four ways contracts are discharged?

The correct response identifies "by endorsement" as not being one of the four recognized ways contracts can be discharged. In contract law, the four main methods of discharging a contract are by performance, by agreement, by breach, and by operation of law.

Discharging a contract by performance occurs when both parties fulfill their obligations under the contract, thereby ending their contractual responsibilities. Discharge by agreement involves the parties mutually agreeing to terminate the contract or modifying its terms, which effectively ends their obligation to perform under the original terms. Discharge by operation of law occurs in specific circumstances dictated by legislation or judicial action, such as bankruptcy or the expiration of the statute of limitations.

Endorsement, while a term that is often associated with negotiable instruments (like checks or bonds), does not pertain to the discharge of contracts. It typically refers to the signature of a party on such instruments to transfer the rights or ownership but does not relate to terminating or fulfilling contractual obligations. Thus, identifying "by endorsement" connects it to a different legal context, underscoring why it is the correct choice in this scenario.