"To honor the contract" means to fulfill or abide by the promises, terms, and obligations stated in the agreement made between two or more parties. Full definition
If you don't honor the contract, the Seller may keep this as damages. (mydcagent.com)
Travel insurance can not cover the flight cancellations, because it's the responsibility of the airline to honor their contract with each ticket holder and get them to their destinations. (travelinsurancereview.net)
If the balance is paid by the last payment day, the lender must honor the contract as normal. (titlelo.com)