What Is a Performance Contract?

A performance contract, according to law, is defined as a legal document that requires an intended party to perform or act personally. Performers or professionals who provide unique services are usually the ones who use performance contracts, which allows the contractor to choose any means for achieving end results. Performance contracts commonly do not allow any form of substitution once the terms are being set.


How to Write a Performance Contract

performance contract template

Just like any other form of contract agreement, a performance contract is considered a legal document and should state clearly and thoroughly the terms being agreed by both parties. To ensure that your performance contract is indeed written well, you may use the list of easy-to-follow instructions below as your reference.

1. Determine the Need for Using a Performance Contract

Are you really required to write a performance contract form? Who asked you to make one? And what is it for? This purpose may range from performance evaluation or performance appraisal to agreement termination. This should always be the first step when creating a performance contract form, determining the purpose beforehand can serve as a good basis for your legal document.

2. Identify the Act that Needs to be Performed

Since performance contracts focus on having one or both parties do something, this act should actually be specified in the contract's content. Always identify the action that needs to be performed, you might even want to do this in outline form if multiple actions are to be expected from the individual. Doing this step properly can help protect both parties if any of them are being challenged for their performance.

3. Negotiate with the Client and Set Terms and Provisions

Creating a legal contract will always involve a meeting of the parties who plan to enter the agreement. This is also applicable in performance contracts, wherein the person who is expected to do the act should first meet with the client or any representative from the other party. During this time, both parties can share their opinion and how they want the end result to be achieved.

4. Start Writing the Performance Contract

By using a document processing tool, you can start writing the performance contract using information gathered during the meeting with the client. You can use any word processor you like, whether it's Google Docs, Microsoft Word, or Apple Pages, what's important is it enables you to freely write your content. Just keep your simple contract and straightforward, but always observe a professional and legal format.

5. Proofread the Content of the Contract

Legal documents should always be free from any errors, whether it's related to spelling or grammar. A single misspelled word or grammatical error could void the entire performance contract form resulting in having to create another one. This is why proofreading is essential especially in legal documents such as contracts. When proofreading, you can always ask assistance from another person, and it may be someone from the other party.

6. Print the Contract and Give a Copy to the Client

This step is very straightforward, it simply tells you to print the performance contract on paper and then sign it before giving a copy to the other party. Take note, that the representative from the other party should also affix signature on the business contract and that you should also keep a copy for record purposes.

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