Contract Law Review: Performance of Contractual Obligations

Once a contract is formed, parties are obligated to perform their mutual promises thereto. This video provides an overview of how courts will analyze contract performance. First, the contract must be understood or "interpreted." A critical step in this interpretation process is determining which terms are promises and which are conditions. Conditions may also be implied, and those implied condition are subject to the doctrine of substantial performance. When a contractual promise is not substantially performed, the other party has the right to withhold payment or cancel the contract, but when a party wrongfully withholds or terminates that is a breach. Any breach subjects a party to liability for remedies such as damages, except where the non-performance is excused pursuant to the doctrines of impracticability and frustration of purpose.