Define: Substantial Performance

Substantial Performance
Substantial Performance
Quick Summary of Substantial Performance

A summary of substantial performance is that it refers to the completion of a contract or agreement in a way that is close to what was originally agreed upon, but with minor deviations or defects. This concept is often used in contract law to determine if a party has fulfiled their obligations sufficiently to be entitled to payment or other benefits. Substantial performance recognises that perfection is not always possible and allows for some leniency in evaluating the overall outcome of a contract.

Substantial Performance FAQ'S

Substantial performance refers to a situation where a party has fulfilled most of their contractual obligations, but there may be minor deviations or defects that do not significantly affect the overall purpose of the contract.

Complete performance means that all contractual obligations have been fully and precisely fulfilled, while substantial performance acknowledges that there may be minor deviations or defects.

No, substantial performance only applies when the deviations or defects are minor and do not significantly impact the purpose of the contract. Major deviations may be considered a breach of contract.

If a party substantially performs their obligations, they are generally entitled to receive the agreed-upon compensation or benefits under the contract. However, the other party may be entitled to seek damages for any minor defects or deviations.

In most cases, specific performance is not available if the other party has substantially performed. Specific performance is typically sought when there has been a material breach of contract.

Generally, a party cannot terminate a contract if the other party has substantially performed. However, they may be entitled to seek damages for any minor defects or deviations.

Whether substantial performance has occurred is determined on a case-by-case basis, considering the nature of the contract, the significance of the deviations, and the overall purpose of the agreement.

If the contract explicitly requires complete performance, a party cannot claim substantial performance. They must fulfill all obligations precisely as stated in the contract.

In most cases, specific performance is not available if the other party has substantially performed. Specific performance is typically sought when there has been a material breach of contract.

Yes, a party may be entitled to seek damages for any minor defects or deviations, even if the other party has substantially performed. However, the damages awarded would generally be limited to the extent of the harm caused by the deviations.

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Disclaimer

This site contains general legal information but does not constitute professional legal advice for your particular situation. Persuing this glossary does not create an attorney-client or legal adviser relationship. If you have specific questions, please consult a qualified attorney licensed in your jurisdiction.

This glossary post was last updated: 13th April 2024.

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