Performance Issues - Common Law Contracts

Question 1

Substantial Performance

Answer 1

If one party has substantially performed, the other party is obligated to perform and complete performance.

Performance does not have to be perfect, only completed more than halfway to obligate other party to perform. If performance rendered was below expectations then the other party may seek money damages for difference.

Question 2

Material Breach

Answer 2

Rules Concerning Common Law Material Breach:

1. Material breaches by the other party excuse performance.
2. Substantial breach DOES NOT EQUAL material breach.
3. Material breach is a question of fact
4. Damages are recoverable for any breach.

TIMELINESS OF PERFORMANCE

1. Failure to perform by time stated is NOT a material breach if performance is rendered within a reasonable time.
2. Exception if K contains “time is of the essence” clause then failure to perform on time is a material breach.