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The concept of substantial performance

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The concept of substantial performance

Category: Essay

Subcategory: Business

Level: College

Pages: 1

Words: 275

Substantial Performance Is Unfair
Under substantial performance, a party may be discharged from a contract even before satisfactory completion or fulfilling the obligations set out in the contractual terms (Perillo 399). It is often granted by a court in a case when there are no significant differences between the performance level, and that promised in the tender terms; the court must ascertain there are only minor deviations. Substantial performance is unfair. It grants a party to a contract (the defendant) an entitlement to payment even when the contract terms have not been fully met to satisfaction of the other party (the plaintiff). A party (the defendant) should fulfill his or her duties to set standards as outlined in the contract. In this regards, it is unfair to grant a party (the defendant) choice of partial performance of the contract in a manner nearly equivalent to terms set out in the contract.
Substantial performance adds burden to the plaintiff who needs to outsource another party to fulfill unaccomplished aspects or terms. Although the plaintiff may recover damages incurred for non-fulfillment of the contractual terms, it is an extra burden on his or her part. Because the second party may place a high expense to complete unfinished part, it adds on the cost of contract; the plaintiff spends more than if the contract was initially fulfilled as agreed. In essence, it is unfair to the plaintiff.
The policy interests in this regards …

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