With the ubiquity of handheld devices (such as smart phones and PDAs) and the availability of a wide range of mobile services (such as mobile banking, road traffic updates, and weather forecast) people can nowadays access information and conduct online transactions virtually anywhere and anytime. In such flexible, dynamic but less reliable environment, transaction management technology is believed to provide service reliability and data consistency. Indeed, in mobile and ubiquitous environments where devices as well as services can, seamlessly join and leave the ubiquitous network, transaction management can be very helpful during the recovery of services from failure. Current transaction models and commit protocols do not take into account context information. However, in mobile environments it is imperative to consider context information in the commit of a transaction -i.e., a transaction can be successfully completed if it meets the required context. In this paper we propose a new model for context-aware transactions and their performance management in mobile environments. Unlike conventional transactions, context-aware transactions adapt to the required context. By context we mean the service context as well as the user's context that includes user's needs and preferences. This paper designs and develops the proposed transaction model and evaluates its performance in terms of time and message complexities as well as transaction's throughput.