Actual Performance

In one sentence

Completing all the obligations required under a contract exactly as promised.

Plain English

Actual performance means you did what you said you'd do—completely and correctly. It's the moment when a party has fulfilled all their contractual duties. Once actual performance happens, the other party's obligation to pay or perform typically kicks in. This is different from substantial performance, which means you did most of it but not perfectly.

Ad slot

Example

You hire a painter to paint your house blue. Actual performance occurs when the painter finishes painting the entire house blue, on time, with quality workmanship, exactly as you agreed.

Used in a sentence

“The seller demanded payment once actual performance of the delivery obligation was complete.”

Related terms

Substantial Breach

A failure to perform a contract that goes to the heart of the deal.

Breach of Warranty

Failing to fulfill a promise or guarantee made about a product or service.

Constructive Condition

A requirement implied by law that must be satisfied before a party's duty to perform arises.

Express Condition

A requirement clearly stated in a contract that must happen for obligations to arise.

Obligation

A legal duty that a party must perform under a contract or law.

Damages Calculation

The process of determining how much money a harmed party should receive for a breach.

Offer

A proposal to enter into a binding agreement on specific terms.

Acceptance

Agreeing to the exact terms of an offer, creating a binding contract.

This page is a plain-English reference and is not legal advice. Laws vary by jurisdiction and change over time. For specific situations consult a licensed attorney.