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The best way to discharge a contract is through

  1. Cancellation

  2. Renegotiation

  3. Performance

  4. Litigation

The correct answer is: Performance

Performance is the best way to discharge a contract because it is when both parties fulfill their obligations and the contract is fully completed. Cancellation and renegotiation may be options, but they do not necessarily fully discharge the contract and may still leave unresolved issues. Litigation may also be a costlier and more time-consuming option compared to performance.