What does performance refer to in the context of a contract?

In the context of a contract, performance specifically refers to the fulfillment of contractual obligations. This means that the parties involved in the contract are expected to carry out their agreed-upon responsibilities and deliverables as outlined in the contract terms. Performance is a critical aspect of contract law, as it determines whether a party has met its obligations or whether any breach has occurred.

When a party performs its duties, it demonstrates compliance with the contract, which can include delivering goods, providing services, making payments, or completing tasks within specified timelines. The successful performance of these obligations is essential for the contract to function as intended and for the relationship between the parties to remain intact.

The other options discuss aspects of the contracting process that do not directly relate to the execution of the agreement. For example, signing the contract is a formal act that makes the contract legally binding, but it does not encompass the ongoing obligations that follow. The negotiation process involves discussions and bargaining prior to formalizing any agreement, while the review of contract terms pertains to evaluating the stipulations after the fact, rather than the act of executing them. Thus, performance is distinctly focused on the active engagement with and adherence to the terms agreed upon in a contract.