2025 Contracts and Sales Bar Exam Complete Practice Test

A contract is typically discharged by performance when both parties fulfill their contractual obligations. This means that each party does what they have promised to do in the contract, thereby completing the terms of the agreement. Performance can involve the delivery of goods, payment for services, or completing agreed-upon actions, all of which serve to bring the contract to an end as both parties have met their responsibilities.

When examining other potential scenarios, terminating the contract unilaterally does not complete the obligations set forth in the contract, and it typically requires adherence to specific conditions outlined in the agreement. A breach of contract indicates that one party has failed to perform as required, which leaves the contract unfulfilled. Similarly, renegotiation implies changing the terms of the original contract rather than fulfilling the existing obligations. Therefore, only the fulfillment of duties by both parties can effectively lead to the discharge of the contract through performance.