Discharge of an obligation means that the obligation has come to an end. The normal way of discharging an obligation is performance. Apart from performance, there are some other ways listed in the Code of Obligations.

Novation is one of these ways. Novation is a new obligation replacing an old one. The preexisting obligation is discharged and a new obligation is created. The parties should conclude an agreement in which the intention should be clearly stated.

The correct answer is E.