Explanation:

- When a creditor, debtor, and third party agree that the third party will become the new debtor, this is called "novation," and the original contract is ended.

- Option 1: Performance – This means fulfilling the terms of the contract, not replacing a party.

- Option 2: Alteration – This refers to changing terms of the contract, not the parties involved.

- Option 3: Waiver – A waiver is relinquishing a right, not substituting parties.

- Option 4: Rescission – This means canceling the contract by mutual agreement.

- The correct answer is: Option 4, rescission.