Contract: substantial performance

Updated: Aug 20, 2021

Where a contract is breached because one party has not completed his part, the court will not allow the plaintiff to consider himself completely discharged from his obligations. Where there is substantial performance, the other party must pay up and sue for damges for the amount by which the work is 3adly done. For example if A asks B to build him a house and B builds the house but paints one or two walls a colour not in the contract, A cannot say that B has not performed the contract and that therefore he need not pay for the house. The court would say the contract was substantially performed and A can only sue for any damage and the additional cost of changing the colour scheme.

Reference: The Penguin Business Dictionary, 3rd edt.

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James Knight
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James is the Editor of Education for Invezz, where he covers topics from across the financial world, from the stock market, to cryptocurrency, to macroeconomic markets.... read more.