What term describes the concept of both parties agreeing to terminate a contract before execution?

The term that describes the concept of both parties agreeing to terminate a contract before its execution is known as a release. A release occurs when each party mutually agrees to relinquish their rights and obligations under the contract, effectively canceling the agreement before it is put into action. This mutual consent allows both parties to disengage from any commitments outlined in the contract without any legal repercussions.

In contrast, rescission typically refers to the cancellation of a contract that has already been executed, often due to some form of misrepresentation or a significant change in circumstances. Termination with notice involves ending an agreement after it has begun, where one party provides notification as outlined within the contract's terms. Assignment refers to the transfer of one party's rights or obligations under a contract to another party, which does not pertain to the mutual termination of a contract prior to its execution. Thus, the most appropriate term for the agreed termination of a contract before it starts is a release.