Which option describes termination of a contract by the complete and satisfactory performance of all contract terms?

• A. By performance
• B. By partial performance w/ written acceptance
• C. Substantial performance
• D. Impossibility of performance (death)

Answer: (A)

Complete performance means every promise and condition in the contract is fulfilled exactly as agreed. When that happens, the contract is discharged and no further duties remain for either party. This is different from substantial performance, where most but not all terms are met, so the contract isn’t fully discharged and damages for any shortfall may be owed. Partial performance with written acceptance can discharge the portion performed if the other party accepts it, but it doesn’t automatically terminate the entire contract. Impossibility of performance ends a contract for reasons outside the parties’ control (like death in a personal services contract), not because all terms were fully met. So the description of terminating by complete and satisfactory performance of all terms is discharge by performance.