Which statement is true about mutual assent termination?

• A. It requires all parties to agree.
• B. It requires a judge's approval.
• C. It requires consideration from the other party.
• D. It requires notice to third parties only.

Answer: (A)

Mutual assent termination hinges on both parties agreeing to end the contract. When everyone involved consents, the contract is discharged through a mutual release or rescission, without the need for courtroom involvement. Because it’s a voluntary, bilateral action, new consideration isn’t required just to terminate by mutual agreement, and there’s no inherent need to involve judges. Notifying third parties isn’t the defining element of this termination—any notice obligations would come from the contract itself or applicable law, not from the fact that both sides agreed to end it. The essential idea is that everyone who was a party to the contract agrees to its termination.