Performance expectations are the heart of the contract between management, the board, and investors.

FORBES: Budget, or Fudge-It?

Another factor depends on the strength of the performance metrics underpinning a contract.

FORBES: Magazine Article

The USDX futures contract is designed to replicate the performance of being short the US Dollar against the following currencies: Euro, Japanese Yen, British Pound, Canadian Dollar, Swedish Krona and Swiss Franc.

FORBES: Bernanke Speaks, Google Beats, GE Mixed, Euro Up: ETFs To Watch

In the case of Alex Rodriguez, issues have already developed with deferred compensation, legitimacy of performance, marketing agreements based on home run milestones, signing bonuses and compensation in the latter years of the contract.

FORBES: The $300 Million Stalemate

The contract clause forbidding use of PED (performance enhancing drugs) was violated too many times to count.

FORBES: Lance And Oprah Sittin' In A Tree

For example, if an athlete has a contract that pays regardless of injuries, performance, or criminal records, then his ability to accept risk increases.

FORBES: Risk Reloaded: Are You Able?

An interesting piece in the New York Times weighs the performance vs. legacy value of Derek Jeter as he enters into free agent contract negotiations with the Yankees.

FORBES: The Jeter Debate Rages On

In the case of the USPS sponsorship, he was required to sign a contract stating that he would not take performance-enhancing drugs.

FORBES: Lance Armstrong, Lies and Lawsuits