Final answer:
The correct answer is option b. Most contracts are discharged by full performance, meaning both parties have fulfilled their obligations. Other options include agreement of the parties, failure of conditions, commercial impracticability, and material breach.
Step-by-step explanation:
The correct answer is B) Full Performance. Most contracts are discharged by full performance, which means that both parties have fulfilled their obligations under the contract. This occurs when all terms of the contract have been fully executed, and both parties are satisfied with the performance of their respective duties.
For example, if Party A agrees to pay $500 to Party B in exchange for a product, and Party A pays the $500 and Party B delivers the product, then the contract is discharged by full performance.
Other options listed also have some relevance in contract law. Agreement of the parties (option A) can also discharge a contract, if both parties agree to terminate the contract. Failure of conditions (option C) refers to situations where certain conditions specified in the contract are not met, which can discharge the contract. Commercial impracticability (option D) can also discharge a contract if unforeseen circumstances make it impossible or impractical to fulfill the contract. A material breach (option E) occurs when one party fails to perform a significant obligation under the contract, which can give the other party the right to terminate the contract.