How does a contract end 'By Performance'?

A contract ends 'By Performance' when both parties carry out their sides as agreed. This means that each party has fulfilled their contractual obligations as specified in the agreement. For instance, if one party delivers goods or services as promised and the other party makes the corresponding payment or provides the agreed consideration, the contract is considered completed through performance.

In this context, the performance must be complete and precise, following the terms outlined in the contract to ensure there are no disputes. This termination method reflects the successful execution of the contract, highlighting the importance of both parties meeting their commitments for the contract to conclude effectively. It emphasizes the role of mutual compliance in maintaining business relationships and the validity of contracts.