Performance-Based Contract
/ˈpɜrfərməns beɪst ˈkɒntrækt/
Definitions
- (n.) A contract in which payment and obligations depend primarily on achieving specified results or outcomes rather than on the methods used.
The government agency awarded a performance-based contract to ensure improved service delivery.
Forms
- performance-based contract
- performance-based contracts
Related terms
See also
Commentary
Performance-based contracts emphasize measurable outcomes, advising drafters to clearly define performance standards and evaluation criteria to avoid disputes.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.