The statement encapsulates a fundamental principle of contract law: the obligation of parties to fulfill their contractual promises. This principle is enshrined in the Indian Contract Act, 1872, which governs the formation, performance, and discharge of contracts in India.

Obligation to Perform (Section 37): Section 37 of the Indian Contract Act, 1872, explicitly states that parties to a contract must either perform or offer to perform their respective promises, unless such performance is dispensed with or excused under the provisions of the Act or any other law. This means that once a valid contract is formed, each party is legally bound to carry out their part of the agreement. The primary objective of entering into a contract is to ensure its performance, leading to the fulfillment of the agreed-upon terms.

Offer of Performance (Tender of Performance - Section 38): Sometimes, a promisor may offer to perform their promise, but the promisee refuses to accept it. Section 38 addresses this by stating that if a promisor makes an offer of performance to the promisee, and the offer is not accepted, the promisor is not responsible for non-performance, nor does he thereby lose his rights under the contract. For an offer of performance to be valid, it must be unconditional, made at a proper time and place, and afford the promisee a reasonable opportunity to ascertain that the thing offered is what the promisor is bound to deliver. If the offer is of goods, the promisee must have a reasonable opportunity of inspecting them.

Dispensation or Excuse from Performance: The Act also recognizes situations where performance may be dispensed with or excused. These exceptions are crucial for maintaining fairness and practicality in contractual relationships. Key provisions include:

1. Agreement and Novation (Section 62): If the parties to a contract agree to substitute a new contract for it, or to rescind or alter it, the original contract need not be performed. This is known as novation, rescission, or alteration by mutual agreement.

2. Remission of Performance (Section 63): A promisee may dispense with or remit, wholly or in part, the performance of the promise made to him, or may extend the time for such performance, or may accept instead of it any satisfaction which he thinks fit. This allows for flexibility and compromise between parties.

3. Impossibility of Performance (Section 56): A contract to do an act which, after the contract is made, becomes impossible or, by reason of some event which the promisor could not prevent, unlawful, becomes void when the act becomes impossible or unlawful. This is often referred to as the doctrine of frustration of contract.

4. Breach of Contract (Section 39): When a party to a contract has refused to perform, or disabled himself from performing, his promise in its entirety, the promisee may put an end to the contract, unless he has signified, by words or conduct, his acquiescence in its continuance. This allows the innocent party to be discharged from their obligations.

5. Neglect of Promisee (Section 67): If the promisee neglects or refuses to afford the promisor reasonable facilities for the performance of his promise, the promisor is excused by such neglect or refusal as to any non-performance caused thereby.

6. Voidable Contracts (Section 64): When a person at whose option a contract is voidable rescinds it, the other party thereto need not perform any promise therein contained in which he is promisor.

In essence, the Indian Contract Act, 1872, establishes a robust framework that prioritizes the performance of contractual obligations while also providing necessary mechanisms for their discharge or excuse under specific, legally recognized circumstances. This balance ensures both the sanctity of contracts and the practical realities of business and personal dealings.