In contract law, what does the term 'performance' generally refer to?

In contract law, the term 'performance' refers specifically to the completion of duties outlined within a contract. This means fulfilling the obligations stipulated by both parties in the agreement. When one party performs their duties, they essentially carry out the terms of the contract and meet their commitments as agreed upon.

Performance is a critical concept because it determines whether a contract has been executed successfully. If one party does not perform as required, it may lead to a breach of contract, providing the other party the right to seek remedies or damages. Understanding performance is essential in assessing the enforcement of contracts and the relationship between the parties involved.

Negotiating terms, writing contracts, and amending agreements are all vital processes in forming and modifying contracts; however, they do not capture the essence of what performance entails. Performance strictly focuses on the execution of the agreed-upon actions within the contractual framework.