Legal Definitions - place of performance

The place of performance refers to the specific geographical location where a promised action or a contractual obligation is intended to be fulfilled. This location can be clearly stated within the terms of an agreement, or it can be reasonably inferred from the language and context of the promise.

• Example 1: Construction Project

  Imagine a general contractor is hired to build a new office building for a client. The contract specifies that the building will be constructed at a particular address in downtown Seattle.

  How it illustrates the term: In this scenario, the "place of performance" for the contractor's obligation to construct the building is the designated plot of land in Seattle. The contractor's promise is fulfilled by completing the construction work at that precise location.

• Example 2: Software Development Service

  A small business hires a freelance software developer to create a custom inventory management system. The agreement states that the developer will deliver the completed software application and provide a one-day training session at the business's main office in Boston.

  How it illustrates the term: Here, the "place of performance" for the training component of the developer's service is the business's office in Boston. While the software development itself might occur remotely, the specific promise of delivering training is tied to a physical location.

• Example 3: Agricultural Supply Contract

  A farmer enters into a contract with a food processing company to supply 500 tons of organic corn. The contract stipulates that the corn must be delivered to the company's processing plant located in rural Iowa by a specific date.

  How it illustrates the term: The "place of performance" for the farmer's obligation to deliver the corn is the food processing company's plant in Iowa. The farmer fulfills their promise by ensuring the corn arrives at that exact facility.