Discharge by performance occurs when duties are fully performed; a condition precedent may excuse performance if the condition does not occur.

• A. A contract is discharged by performance when duties are fully performed, regardless of conditions precedent.
• B. A contract is discharged by performance only when there is a breach; otherwise not.
• C. A contract is discharged by performance when duties are fully performed, and a condition precedent may excuse performance if the condition does not occur.
• D. Performance cannot discharge a contract; only rescission can.

Answer: (C)