Which event ends a contract when performance is completed?

Which event ends a contract when performance is completed?

• A. Frustration.
• B. Termination by notice.
• C. Breach.
• D. Performance.

Answer: (D)

Discharge by performance happens when both sides have carried out their promises in full and the performance is accepted. Once all obligations are fully performed and accepted, there are no remaining duties, so the contract comes to an end. This is why the event that ends a contract when performance is completed is simply performance. Frustration ends a contract only if something unforeseen makes performance impossible or illegal. Termination by notice ends the contract early, before all performance is completed. A breach can give rise to damages and may terminate the contract in some cases, but it isn’t the standard way a contract ends on complete performance.

Discharge by performance happens when both sides have carried out their promises in full and the performance is accepted. Once all obligations are fully performed and accepted, there are no remaining duties, so the contract comes to an end. This is why the event that ends a contract when performance is completed is simply performance.

Frustration ends a contract only if something unforeseen makes performance impossible or illegal. Termination by notice ends the contract early, before all performance is completed. A breach can give rise to damages and may terminate the contract in some cases, but it isn’t the standard way a contract ends on complete performance.