Performance of contract refers to the completion of all the obligations and promises made under the terms of a contractual agreement. It is the duty of both parties involved in a contract to ensure that they fulfill every detail of their respective obligations as agreed in the contract.
Simply put, performance of contract means that both parties deliver what they promised to deliver, on time, and in the manner they agreed upon. It is very important to understand the concept of performance of contract, because it is an essential part of any legal agreement.
The performance of a contract can be divided into two parts: complete performance and substantial performance. Complete performance happens when both parties fulfill all their obligations under the contract. On the other hand, substantial performance occurs when the obligations are almost fully carried out, but there are minor breaches that can be remedied.
The party who performs the contract is entitled to receive the agreed compensation, while the other party is required to pay for the services rendered. Failure to perform the contract can result in a breach of contract, which can lead to legal consequences.
In order to ensure that the performance of a contract is satisfactory, both parties should include specific details of their obligations, deadlines, and payment terms in the contract. This helps to avoid any confusion or misunderstanding that might arise during the course of the contract.
One common issue that can affect the performance of a contract is force majeure. This is a clause that excuses the responsible party from performance in the event of unforeseeable circumstances, such as natural disasters, war, or civil unrest.
In conclusion, performance of contract is very important in ensuring that contractual agreements are fulfilled and respected by both parties. It is essential to include specific details of obligations, deadlines, and payment terms in the contract to avoid any confusion or misunderstandings. Failure to perform the contract can lead to serious legal consequences, so it is important to take this concept seriously.