Under common law, substantial performance suffices.

Under common law, substantial performance suffices.

• A. True
• B. False
• C. Only for services
• D. Only if written contract

Answer: (A)

Substantial performance is the standard used in many service and construction contracts under common law. It means that if a party has carried out the work in good faith and completed most of the duties, with only minor, nonessential defects, the contract is considered substantially performed. The effect is that the performing party is entitled to payment for the work done, though the other party may recover damages for any deficiencies. The key is whether the deviation is material—if the deviation goes to the heart of the contract or defeats its essential purpose, that would be a material breach rather than mere nonconformity. This concept does not apply in the same way to sale of goods, where the UCC generally requires perfect tender unless the contract provides otherwise. So, in common law contexts (like services or construction), substantial performance suffices to keep the contract alive and obligate payment, subject to damages for defects.

Substantial performance is the standard used in many service and construction contracts under common law. It means that if a party has carried out the work in good faith and completed most of the duties, with only minor, nonessential defects, the contract is considered substantially performed. The effect is that the performing party is entitled to payment for the work done, though the other party may recover damages for any deficiencies. The key is whether the deviation is material—if the deviation goes to the heart of the contract or defeats its essential purpose, that would be a material breach rather than mere nonconformity. This concept does not apply in the same way to sale of goods, where the UCC generally requires perfect tender unless the contract provides otherwise. So, in common law contexts (like services or construction), substantial performance suffices to keep the contract alive and obligate payment, subject to damages for defects.