In my experience, teachers tend to to consider
- Non-continuity
- Discontinuity
as different ideas. In particular, many of us don't define discontinuity as the logical negation of continuity, since too many students would consider any point outside the domain of the given function as a point of discontinuity. The usual definition of discontinuity (at the point $x_0 \in E$ for the function $f \colon E \to \mathbb{R}$) is that either $\lim_{x \to x_0} f(x)$ does not exist in $\mathbb{R}$, or $f(x_0) \neq \lim_{x \to x_0} f(x)$.
But there is a second interpretation that can be rephrased as follows: a function $f \colon E \to \mathbb{R}$ is discontinuous at the point $x_0 \in \overline{E}$ if $f$ cannot be defined at $x_0$ in such a way that this extension is continuous.
For these teachers, $x_0=2$ is a discontinuity point of $f(x)=\frac{1}{x-2}$, since no definition of $f(2)$ will ensure continuity. I think that, at least in Italy, this alternative definition is very popular among high-school instructors and high-school textbooks.
This said, I have never read a book in which singular points (i.e. points where a function is not differentiable) may fall outside the domain.