Discuss the difference between static and dynamic binding in Object-Oriented Programming, and provide examples of when each occurs.

Static binding (also known as early binding) occurs at compile time, where the method to be invoked is determined based on the declared type of the object. Dynamic binding (also known as late binding) occurs at runtime, where the method to be invoked is determined based on the actual type of the object. Static binding is commonly seen in method overloading, while dynamic binding is associated with method overriding.