Which term refers to mutual consent of the parties to terminate an agreement?

• A. Breach
• B. Renunciation
• C. Revocation
• D. Time for performance

Answer: (B)

When both parties agree to end a contract, the term that fits is renunciation. It captures the idea of voluntary abandonment of the agreement by all involved, releasing each other from the duties and obligations originally created. This is different from a breach, where one side fails to perform and the contract isn’t terminated by mutual agreement. It’s also not about revocation, which is the withdrawal of an offer or authority by one party, nor is it about a deadline for performance, which merely sets a time by which duties should be done rather than ending the contract. Renunciation therefore best describes the mutual consent to terminate.