Q.Discharge by mutual agreement may involve :

A contract discharged by mutual agreement can be ended through novation, rescission, alteration (and also remission and waiver). As rescission, alteration and novation are all such modes, all of the above is correct.

Under the Indian Contract Act, parties who created a contract by agreement can also end or modify it by fresh agreement. The main modes are:

• Novation — substituting a new contract for the old one (new terms or new parties).
• Rescission — cancelling the contract so that neither party need perform.
• Alteration — changing one or more terms with mutual consent.
• (Also remission and waiver.) …