Performance Risk
/ˈpɜːrfɔːrməns rɪsk/
Definitions
- (n.) The legal uncertainty that contractual obligations may not be fulfilled as agreed, potentially resulting in breach or liability.
The contract included clauses to mitigate performance risk in delivering goods on time.
Forms
- performance risk
Related terms
See also
Commentary
Performance risk often informs risk allocation clauses in contracts, advising parties on potential liabilities for non-performance under various circumstances.
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.