Legal Definitions - offer of performance

An offer of performance refers to one party in a contract clearly indicating to the other party, either through their words or actions, that they are ready, willing, and able to fulfill their obligations as agreed. This assurance is particularly important in contracts where both parties are expected to perform their duties at the same time. It allows each party to confirm the other's readiness before proceeding with their own part of the agreement.

• Imagine a homeowner hires a landscaper to install a new patio. On the agreed-upon installation day, the landscaper arrives with all the necessary materials, tools, and a crew, and begins to unload equipment. This action constitutes an offer of performance. It signals to the homeowner that the landscaper is ready to begin the work as promised. If the homeowner were then to refuse access or payment without a valid reason, they might be in breach of contract, as the landscaper had made a clear offer to perform.

• Consider a small bakery that orders a specialized commercial oven from a supplier. The contract states the oven will be delivered and installed on a specific date, and payment is due upon successful installation. When the supplier's delivery truck arrives at the bakery with the oven, and the installation team is ready to unload and set it up, this is an offer of performance. The supplier is demonstrating their readiness to deliver and install the oven according to the contract, which then obligates the bakery to be ready to make payment once the installation is complete.

• A buyer and seller are closing on a house. At the closing table, the buyer's attorney presents a cashier's check for the full purchase price and all required closing documents, signed and ready for submission. This act by the buyer is an offer of performance. It shows the seller that the buyer is ready and able to complete their financial and documentary obligations to finalize the sale. If the seller then refused to sign their part of the paperwork without a legitimate reason, they would be rejecting the buyer's valid offer of performance.