What reflects an agreement where one party has not completed their obligations but is accepted by the other party?

The correct choice, partial performance, refers to a situation in which one party has fulfilled some, but not all, of their contractual obligations and the other party recognizes and accepts this incomplete performance. This concept is particularly important in contract law because it acknowledges that the party receiving the performance may still be bound by the terms of the agreement despite the other party not having completed all of their obligations.

In many cases, the acceptance of partial performance may extend the relationship or obligations between the parties, meaning that the contract is still considered valid even if not fully executed. This can often be seen in scenarios such as real estate transactions, where one party may have started fulfilling their duties (like making a down payment) while still needing to complete other aspects (like closing the sale).

The other options relate to different contractual circumstances. Novation involves replacing one party in a contract with another, effectively creating a new contractual relationship. Frustration of purpose occurs when an unforeseen event fundamentally changes the nature of the contract, making it impossible to fulfill. A counteroffer represents a response to a proposal that changes the terms, effectively rejecting the initial offer.

Overall, the concept of partial performance underscores the flexibility and practical realities of contractual relationships while showing that acceptance of incomplete obligations can still