The act of terminating a contract by performance is referred to as what?

The act of terminating a contract by performance is best understood through the concept of discharge. When a contract is discharged, it means that the parties involved have fulfilled their respective obligations as outlined in the contract, thereby bringing the contractual relationship to an end. Performance is the primary method by which a contract is discharged, signifying that all terms have been met.

In contrast, terms like rescind, void, and novation refer to different contractual scenarios. Rescinding a contract involves canceling it and returning the parties to their pre-contractual positions, often due to a mutual agreement or a qualifying circumstance such as misrepresentation. A void contract is one that is not legally enforceable from the outset, meaning it has never had legal validity. Novation involves replacing one of the original parties in a contract with a new party, thereby transferring obligations and rights, but does not refer to the completion of performance that discharges the contract.

Thus, the correct term for terminating a contract through the execution of its terms is discharge.