In contracts, what does "performance" mean?

In the context of contracts, "performance" refers specifically to the fulfillment of contractual obligations as agreed upon by the parties involved. This means that each party meets their responsibilities and duties as specified in the contract. Performance is a critical aspect of contract law because it signifies that the agreement is being executed as intended, ensuring that all parties receive the benefits and services they expect from the contract.

For instance, if a contractor is hired to build a house, performance would involve the completion of construction work according to the agreed-upon specifications, timeline, and quality. It reflects the actual carrying out of responsibilities rather than just the act of signing the contract or any enforcement actions that might arise from a breach of the contract. Understanding performance is essential for both parties, as it determines whether or not obligations have been met and whether the terms of the contract have been honored.