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Performance Contract Agreement

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PERFORMANCE CONTRACT AGREEMENT

This Performance Contract Agreement ("Agreement") is entered into as of Effective Date: by and between Client Name: , Client Address: , and Performer Name: , Performer Address: .

RECITALS

WHEREAS, Client engages entertainers and production services for public and private events and desires to engage Performer to provide a live performance described below; and

WHEREAS, Performer represents and warrants that Performer is qualified, experienced, and possesses all necessary licenses, rights, and approvals to perform the services contemplated herein and is willing to perform subject to the terms and conditions of this Agreement; and

WHEREAS, the parties desire to set forth their entire agreement with respect to the subject matter hereof.

NOW, THEREFORE, in consideration of the mutual covenants and promises set forth below, the parties agree as follows:

1. ENGAGEMENT AND PERFORMANCE

1.1 Engagement. Client hereby engages Performer, and Performer accepts such engagement, to provide a live performance (the "Performance") as described in this section and any Rider attached hereto.

1.2 Performance Details: Performance Description:

Date of Performance:   Start Time:   End Time:

Performance Location:

2. TERM

The term of this Agreement commences on the Effective Date and continues until the completion of the Performance and final settlement of all amounts due, unless earlier terminated in accordance with Section 7 below.

3. COMPENSATION AND PAYMENT

3.1 Fee. Client shall pay Performer a total fee of USD for the Performance.

3.2 Deposit. A non-refundable deposit of is due on or before to secure the date.

3.3 Balance. The remaining balance of is due no later than , unless otherwise agreed in writing.

3.4 Taxes. Performer is responsible for all taxes associated with payments received under this Agreement. Client shall not withhold any taxes unless required by applicable law.

4. EXPENSES; RIDER

4.1 Reimbursable Expenses. Client agrees to reimburse Performer for pre-approved out-of-pocket expenses reasonably incurred in connection with the Performance up to an aggregate amount of USD upon presentation of receipts.

5. INDEPENDENT CONTRACTOR

Performer is engaged as an independent contractor. Nothing in this Agreement shall be construed to create an employment, joint venture, partnership, or agency relationship between the parties. Performer shall be solely responsible for all personnel, employment taxes, workers' compensation and related liabilities.

6. INTELLECTUAL PROPERTY AND RECORDINGS

6.1 Rights in Performance. Performer retains all copyrights, moral rights, and other intellectual property rights in and to Performer's original material and live performance, except as expressly licensed to Client in writing.

6.2 Recording and Broadcast. Recording, transmission, filming, or broadcasting of the Performance is not permitted without the prior written consent of Performer. Grant of any recording or broadcast rights shall be subject to separate written license specifying scope and compensation.

7. CANCELLATION; FORCE MAJEURE

7.1 Cancellation by Client. If Client cancels the Performance more than 30 days prior to the Performance Date, Client shall forfeit the deposit. If Client cancels within 30 days of the Performance Date, Client shall pay Performer the full agreed Fee, less amounts actually earned from substitution bookings, if any.

7.2 Force Majeure. Neither party shall be liable for failure or delay in performing obligations caused by events beyond its reasonable control, including acts of God, war, terrorism, civil disturbance, government action, labor disputes, epidemic or pandemic, fire or other casualty. If a force majeure event continues for more than 60 days, either party may terminate this Agreement without further liability except for obligations accrued prior to such termination.

8. REPRESENTATIONS, WARRANTIES AND COVENANTS

Each party represents and warrants that it has full power and authority to enter into this Agreement, that performance will not violate any agreement with a third party, and that the execution and performance of this Agreement has been duly authorized.

9. INDEMNIFICATION

Each party (the "Indemnifying Party") shall indemnify, defend and hold harmless the other party and its officers, directors, agents and employees from and against any and all claims, liabilities, losses, damages, costs and expenses (including reasonable attorneys' fees) arising out of or related to: (a) the Indemnifying Party's breach of this Agreement; (b) negligence or willful misconduct of the Indemnifying Party or its personnel; or (c) infringement claims arising from materials provided by the Indemnifying Party.

10. LIMITATION OF LIABILITY

Except for losses arising from gross negligence or willful misconduct, neither party shall be liable for indirect, incidental, consequential, exemplary or punitive damages, and a party's aggregate liability under this Agreement shall not exceed the total fees actually paid by Client to Performer under this Agreement.

11. CONFIDENTIALITY

The parties agree to keep the terms of this Agreement and any non-public business information obtained in connection with the Performance confidential and not to disclose such information to any third party except as required by law or with the prior written consent of the other party.

12. INSURANCE

Performer shall maintain at its expense general liability insurance in commercially reasonable amounts and, where applicable, workers' compensation insurance. Upon Client's request, Performer shall provide a certificate of insurance evidencing such coverage.

13. NOTICES

All notices required or permitted under this Agreement shall be in writing and delivered personally, by certified mail (return receipt requested), or by reputable overnight courier to the addresses set forth below or such other address as either party may specify in writing.

14. AMENDMENTS; WAIVER

No amendment, modification or waiver of any provision of this Agreement shall be effective unless in writing and signed by both parties. The failure of either party to exercise any right shall not constitute a waiver of that right.

15. GOVERNING LAW

This Agreement shall be governed by and construed in accordance with the laws of the State of , without regard to conflicts of law principles.

16. ENTIRE AGREEMENT

This Agreement, including any Rider or addendum signed by the parties, constitutes the entire agreement between the parties with respect to the subject matter hereof and supersedes all prior and contemporaneous negotiations, representations and agreements, whether written or oral.

17. SEVERABILITY

If any provision of this Agreement is held to be invalid, illegal, or unenforceable in any respect, the validity, legality and enforceability of the remaining provisions shall not in any way be affected or impaired thereby.

18. COUNTERPARTS

This Agreement may be executed in counterparts, each of which shall be deemed an original and all of which together shall constitute one and the same instrument. Signatures transmitted by facsimile or electronic image shall have the same effect as original signatures.

SIGNATURES

Client:

By:

Date:

Performer:

By:

Date:

Enter text✕

What a Performance Contract Agreement Covers

A Performance Contract Agreement is a legally binding contract that sets measurable expectations, deliverables, and payment terms tied to specific performance outcomes between two or more parties. It defines scope of work, performance standards, acceptance criteria, reporting cadence, remedies for non-performance, and dispute-resolution processes. Parties commonly include milestone schedules, inspection or testing procedures, and liquidated damages or incentive provisions. The agreement may incorporate exhibits such as technical specifications, payment schedules, and acceptance forms and can be executed electronically under U.S. e-signature law where permitted.

Why use a Performance Contract Agreement

Performance contracts align expectations, reduce ambiguity, and connect compensation to verifiable outcomes. They provide objective acceptance criteria, simplify dispute resolution, and create clear remedies for missed obligations, which helps protect both payor and provider under established contract law.

Why use a Performance Contract Agreement

Who typically completes and signs these agreements

Organizations and individuals across sectors use performance contracts when payment or continuation depends on measurable results.

  • Contractors and subcontractors managing milestone-based construction or services payments.
  • Government agencies, grant recipients, and prime contractors who require outcome-based deliverables.
  • Vendors and service providers in IT, facilities, or professional services paid on agreed performance metrics.

Signatories should include authorized corporate representatives or officers and any third parties named as guarantors or performance bondsmen.

Key roles involved

Project Manager

The primary operational contact who tracks milestones, certifies completed deliverables, and submits acceptance or rejection notices. The project manager enforces testing protocols and communicates performance deficiencies to legal or procurement teams.

Legal Counsel

Drafts and reviews contract language for enforceability, remedies, and risk allocation. Counsel ensures the agreement complies with applicable state law and that amendment and termination clauses are legally effective.

Essential elements to include

A clear, well-structured Performance Contract Agreement uses targeted sections to reduce ambiguity and support enforcement.

Scope of Work

Describe precise tasks, deliverables, and any excluded activities so performance obligations are objectively measurable and auditable.

Performance Metrics

List quantitative standards, acceptance thresholds, sampling methods, and reporting frequency for each deliverable or milestone.

Payment Terms

Tie compensation to milestone acceptance, define invoicing requirements, and include holdbacks, retainage, or incentive calculations.

Remedies & Damages

Specify cure periods, liquidated damages, set-off rights, and termination for cause procedures to manage underperformance.

Acceptance Testing

Outline inspection, testing protocols, sign-off process, and criteria for rejection and rework.

Change Control

Define how scope changes are proposed, approved, priced, and incorporated, including required documentation and approvals.

Step-by-step: completing the agreement

Follow this sequence to prepare, review, and execute a performance contract that is clear, enforceable, and ready for electronic signature.

  • 01
    Prepare Draft: Assemble scope, metrics, schedule, and exhibits before circulating for review.
  • 02
    Internal Review: Have project leads and legal counsel confirm metrics, remedies, and payment language.
  • 03
    Finalize Terms: Resolve open items, insert dates, and complete fillable fields for signature.
  • 04
    Execute: Collect authorized signatures, timestamps, and retain a signed copy with audit trail.

How to set up an online signing workflow

Configure signer order, authentication, and reminders for a smooth digital execution process.

Field Configuration
Signer Order Sequential or parallel signing depending on approval flow
Authentication Email link, SMS code, or stronger KBA depending on risk
Reminders Automated email reminders every 3–7 days until complete
Storage Location Cloud repository or contract management folder for signed originals

Typical routing and submission path

A reliable delivery and acceptance chain reduces disputes and preserves evidence of performance and approvals.

  • Upload Document: Sender uploads final agreement and attached exhibits.
  • Place Fields: Sender positions signature, date, and metric confirmation fields.
  • Send to Signers: System emails signers or generates secure signing links.
  • Archive Signed Copy: Signed PDF and audit log are saved for retention and audits.

Digital signing and file format requirements

Ensure your platform supports secure signatures, audit trails, and common file formats for exhibit attachments.

  • File Types: PDF, DOCX, and XLSX accepted
  • Integrations: Salesforce, NetSuite, Google Workspace integration
  • Authentication: Email, SMS, 2FA, or KBA options

Confirm chain-of-custody features and encryption to preserve admissibility and regulatory compliance.

Common deadlines and notice periods to include

Document clear timing elements for notices, cure periods, invoicing, and acceptance to avoid contractual disputes.

Effective Date:

Date when obligations and rights commence

Cure Period:

Typical 10–30 days to remedy a breach

Notice Period:

Delivery timeframe for termination or default notices

Invoice Deadline:

Submit invoices within agreed days, e.g., 30 days

Acceptance Window:

Set inspection period, commonly 5–30 days

Key milestones through the contract lifecycle

Track milestones from negotiation through closeout to preserve performance evidence and payment eligibility.

01

Negotiation

Agree scope, metrics, and pricing before execution.

02

Execution

Signatures collected and effective date established.

03

Performance Period

Deliverables produced, tested, and accepted per schedule.

04

Closeout

Final acceptance, final invoice, and record retention steps.

Common errors that delay enforcement or payment

  • Vague metrics such as 'reasonable effort' that cannot be objectively measured, leading to disputes.
  • Missing signature authority where the signer lacks corporate power, rendering the document voidable.
  • Inconsistent exhibit references or versioning mistakes that create conflicting obligations and acceptance criteria.
  • Failure to specify cure periods and notice methods, which can bar remedies or raise litigation costs.

Risks and penalties for incorrect or missing elements

Late Payment: Interest charges or withheld final payments
Non-performance: Liquidated damages or termination for cause
Incorrect Metrics: Disputed acceptance and delayed invoicing
Invalid Signature: Signature challenge or unenforceability risk
Improper Notarization: Rejected filings or evidentiary weakness
Regulatory Fines: Sector-specific penalties where statutes apply

eSignature vendor pricing and capability snapshot

Compare starting prices and select capabilities relevant to performance-contract workflows, such as bulk send, audit trail, HIPAA support, and envelope limits.

signNow DocuSign Adobe Sign PandaDoc HelloSign
Starting Price $8/user/mo $15/user/mo $14/user/mo $19/user/mo $15/user/mo
Free Trial 7-day free trial Varies by plan Varies by plan Varies by plan Varies by plan
Bulk Send Yes Yes Yes Yes Yes
Audit Trail Yes Yes Yes Yes Yes
HIPAA Compliant Yes Yes Yes No No

Security and compliance features to verify

Encryption Transit: TLS 1.2/1.3
Encryption Rest: AES-256
Audit Trail: Timestamp, IP, action log
BAA Available: Yes, BAA required for HIPAA
Certifications: SOC 2, ISO 27001
Auth Options: Email, SMS, 2FA, KBA

Frequently asked questions

Answers to common legal, technical, and administrative questions about Performance Contract Agreements and electronic execution.


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