In contract law, what does 'performance' refer to?

In the context of contract law, 'performance' specifically refers to the fulfillment of one's duties arising under a contract. This means that when parties enter into a contract, they are obligated to carry out their specific duties as outlined in that agreement. Performance can take various forms depending on the type of contract, such as delivering goods, providing services, or paying money.

When one party performs their obligations according to the terms set in the contract, it signifies that they have met their contractual duties. This is essential for the completion of the contract and is often a critical consideration if there are disputes about whether the terms were met satisfactorily. Understanding this concept is important, as performance is fundamental to the enforcement of contracts and determining if a breach has occurred.