What does remission do to a person's liability under a contract?

Remission in the context of contract law refers to the voluntary relinquishment of a known right, which means that a party can choose to forgive or cancel a part of the obligations under a contract. When remission occurs, it discharges the entire liability of the party related to the particular obligation they have chosen to remit.

For instance, if one party decides to forgive another party's outstanding debt entirely, that forgiveness is a form of remission that results in the complete discharge of the debtor's liability for that debt. Therefore, the right answer indicates that remission extinguishes the entire liability as opposed to merely reducing it, transferring it, or increasing it. This understanding is crucial for applying principles related to discharge of obligations in contracts within business law.