Which of the following is NOT a method of discharging a contract?

The option indicating modification of terms is indeed the correct choice as it is not a method of discharging a contract.

Discharge of a contract refers to the processes by which the parties to a contract are released from their obligations under that contract. Different methods of discharging a contract include performance, where both parties fulfill their contractual obligations, and mutual agreement, where both parties agree to terminate the contract. Repudiation involves one party indicating that they will not fulfill their obligations, thus allowing the other party to discharge the contract due to the breach.

Modifying the terms of a contract does not free the parties from their obligations; rather, it alters the existing agreement while maintaining its validity. Therefore, while parties may agree to modify the terms of a contract, this action alone does not discharge it.