How is 'contract performance' defined?

'Contract performance' refers specifically to the execution of obligations as outlined in a contract. This encompasses the delivery of goods, services, or any other commitments that parties have agreed upon in the contract. When both parties fulfill their respective duties according to the agreed terms, this constitutes contract performance.

In a business context, successful contract performance is crucial for maintaining good relations and ensuring compliance with the contract's objectives. It directly impacts the outcomes expected from the contractual agreement, including quality, timelines, and costs.

The other choices focus on different aspects of contract management. For instance, negotiating contract terms is a process that occurs before the contract is executed, while auditing involves reviewing financial compliance and performance after obligations have been fulfilled. The termination of a contract relates to the ending of an agreement, which is not the same as the performance of its terms. Thus, none of these options encapsulate the essence of 'contract performance' as effectively as the execution of obligations.