What does discharge of contract refer to?

Discharge of contract refers to the termination of contractual obligations when the parties to the contract are released from their duties under the agreement. This can occur through various means, such as mutual agreement between the parties, fulfillment of the contract terms, or the occurrence of a specific event. Once a contract is discharged, both parties are no longer legally bound to perform their contractual duties.

In contrast, the other options present different concepts related to contracts. The extension of contractual obligations implies that the parties are agreeing to continue their responsibilities beyond the original terms, which does not align with the idea of discharge. Alteration of contract terms suggests a modification of the existing agreement rather than a termination of responsibilities. Lastly, the introduction of a third party into the contract is related to the assignment or novation of contractual rights but does not constitute a discharge of the original contract.

This understanding of contract discharge is fundamental to navigating business law, as it defines when parties are liberated from their obligations and can move on from the contract.