Nova Scotia Association of Realtors (NSAR) Salesperson License Practice Test 2025 – Your All-in-One Guide to Exam Success!

In the context of contract termination, the phrase "by performance" refers to the situation where the parties involved in the contract have completed or fulfilled all of their contractual obligations. This means that each party has done everything that was required of them under the terms of the contract, resulting in the contract being effectively terminated because it has been fully executed. When both parties meet their responsibilities and deliver on the agreed terms, it signifies the successful conclusion of the agreement, thus leading to its termination through performance.

The other options provided do not accurately capture the meaning of "by performance." Mutual agreement would suggest that the parties have come together to end the contract, which is different from fulfilling obligations. An invalidation by law implies that the contract was never valid to begin with or has been deemed unenforceable by a legal authority, which does not involve completing the terms. Lastly, rejection by one party means that the contract is being terminated by the decision of one side, rather than both parties completing their duties under the agreement.