What is the term used for the fulfillment of contractual obligations by parties?

The term used for the fulfillment of contractual obligations by parties is known as the "Performance of Contract." This concept is fundamental in contract law, as it signifies that the parties involved have completed the obligations outlined in their agreement. When a contract is formed, each party has certain responsibilities to meet, and the successful completion of these responsibilities is what legal systems recognize as performance.

Performance can occur through various means, such as completing a task, delivering goods, or making payments. It is essential for ensuring that the purpose of the contract is achieved, which is primarily to provide each party with the benefits they agreed upon. The performance of a contract leads to the discharge of the obligations, meaning the parties no longer hold any duties towards one another concerning that contract.

In contrast, the other options reflect different concepts within contract law. Breach of contract pertains to a failure to perform one’s obligations. A valid contract refers to an agreement that meets all legal requirements to be enforceable but does not refer to the act of fulfilling those obligations. Transfer of ownership relates to the conveyance of property rights and is not specifically about contractual performance. Understanding these distinctions helps clarify why "Performance of Contract" aptly describes the act of fulfilling contractual obligations.