What is meant by 'assurance of performance' in a contract?

'Assurance of performance' in a contract refers to the commitment that a party possesses the capability and capacity to fulfill their contractual obligations. This encompasses not only the skills and resources necessary to carry out the work but also the reliability and commitment of the party to deliver on their promises as specified in the contract.

When a party provides assurance of performance, it instills confidence in the other party that the necessary actions will be taken to meet the terms of the agreement. This assurance might involve a demonstrated track record of successful performance, financial stability, or other relevant qualifications that ensure they can uphold their end of the contract.

The other options focus on specific elements of a contractual relationship but do not encompass the broader concept of assurance of performance. For example, guaranteeing low prices pertains to cost rather than capability, ensuring fast delivery highlights a specific timeline instead of overall performance capacity, and guaranteeing legal advice addresses support in disputes rather than the ability to fulfill contractual duties. Thus, the focus on capability to fulfill obligations accurately reflects the essence of assurance of performance in contractual contexts.