Which of the following is NOT a way a contract can be discharged?

• A. Discharge by performance
• B. Discharge by agreement
• C. Discharge by negotiation
• D. Discharge by frustration

Answer: (C)

Discharge by negotiation is not a recognized method for discharging a contract. Contracts can be extinguished through specific, recognized means that typically involve formal or mutual agreements rather than informal negotiation.

Discharge by performance occurs when both parties fulfill their contractual obligations, effectively ending the contract. This is a natural conclusion to a contract where the terms have been satisfied. Discharge by agreement happens when the parties come together to modify or terminate the existing contract, which can involve a mutual consent to end the agreement before fulfillment. Discharge by frustration refers to instances where unforeseen events make it impossible to fulfill the contract under its original terms, leading to its termination.

While negotiation can occur in the context of wanting to discharge a contract, it does not constitute a formal means of discharging a contract itself. The termination or alteration of contracts requires concrete actions such as performance, agreement, or frustration, rather than merely discussing or negotiating terms.