When can a contract be considered discharged?

A contract can be considered discharged when there is termination of contractual obligations. This concept means that the parties involved in the contract have fulfilled their duties, or an event has occurred that releases them from their responsibilities under the contract. Discharge can happen in various ways, such as through completion of the contract's terms, mutual agreement, or frustration of purpose, meaning that unforeseen events prevent the contract's performance.

In this scenario, the focus is on the end of the contractual obligations. This can occur when the contract is completed as agreed, or when both parties decide to end it before its natural conclusion. Thus, option C best aligns with the concept of a contract being discharged as it directly addresses the termination of the obligations stipulated in the contract.

Other options might imply scenarios related to contract modification, breach of contract, or third-party involvement but do not directly result in the discharge of the contract. Modifying terms or accepting performance from a third party does not inherently end the contract; rather, they alter the original agreement. Failure to perform by one party indicates a breach rather than a complete discharge, which could lead to remedies but not an automatic end to the agreement.