Which situation represents a 'release' in contract interpretation?

In contract interpretation, a 'release' refers to the situation where one party relinquishes its right to enforce a contract or waives performance obligations. In this context, when a party states that performance is no longer required, it effectively releases the other party from their obligations under the contract. This means that the contract can no longer be enforced and the parties are free from their contractual duties.

The other situations either involve modifications to the contract, such as a change in the scope of work, or do not constitute a release since they still imply an ongoing obligation or the possibility of pursuing a legal remedy. For example, retaining the right to seek damages indicates that a party is still acknowledging the existence of the contract, while admitting to a breach suggests a recognition of an obligation that has not been fulfilled. Therefore, stating that performance is no longer required clearly demonstrates a release of contractual obligations, making it the correct choice.