substantial performance doctrine

substantial performance doctrine
A doctrine in commercial reasonableness which recognizes that the rendering of a performance which does not exactly meet the terms of the agreement (slight deviation) will be looked upon as fulfillment of the obligation, less the damages which result from any deviation from the promised performance. This doctrine, which is widely applied in building contracts and which is intended to prevent unjust enrichment, provides that where contract is made for agreed exchange of two performances, one of which is to be rendered first, substantial performance, rather than strict, exact or literal performance, by first party of terms of contract is sufficient to entitle such party to recover on such performance. Delia Ratta, Inc. v. American Better Community Developers, Inc., 38 Md. App. 119, 380 A.2d 627, 637.
Substantial performance of a contract is shown when party alleging substantial performance has made an honest endeavor in good faith to perform his part of the contract, when results of his endeavor are beneficial to other party, and when such benefits are retained by the other party; if any one of these circumstances is not established the performance is not substantial, and the party has no right of recovery. Alliance Tractor & Implement Co. v. Lukens Tool & Die Co., 194 Neb. 473, 233 N.W.2d 299, 301

Black's law dictionary. . 1990.

Look at other dictionaries:

  • substantial performance doctrine — The principle that where there has been a breach of one of several promises, the question whether there has been a failure of consideration, a complete failure or a partial failure, is determined according to whether or not there has been a… …   Ballentine's law dictionary

  • substantial performance — see performance Merriam Webster’s Dictionary of Law. Merriam Webster. 1996. substantial performance …   Law dictionary

  • performance — The fulfillment or accomplishment of a promise, contract, or other obligation according to its terms, relieving such person of all further obligation or liability thereunder. See also execute execution part performance payment; substantial… …   Black's law dictionary

  • substantial compliance rule — Compliance with the essential requirements, whether of a contract or of a statute. Wentworth v. Medellin, Tex.Civ.App., 529 S.W.2d 125, 128. In life insurance law is that where insured has done substantially all he is required to do under policy… …   Black's law dictionary

  • performance — per·for·mance n 1: work done in employment unsatisfactory performance 2 a: what is required to be performed in fulfillment of a contract, promise, or obligation substituted a new performance in novation of the contract b: the fulfillment of a… …   Law dictionary

  • substantial compliance — n: compliance with the substantial or essential requirements of something (as a statute or contract) that satisfies its purpose or objective even though its formal requirements are not complied with Merriam Webster’s Dictionary of Law. Merriam… …   Law dictionary

  • part performance — Performance by a party to a contract which is less in extent than full or substantial performance as measured by the conditions of the agreement. 17 Am J2d Contr §§ 379 et seq. The doctrine that part performance of an oral contract for the sale… …   Ballentine's law dictionary

  • completion — The finishing or accomplishing in full of something theretofore begun. See also substantial performance doctrine …   Black's law dictionary

  • completion — The finishing or accomplishing in full of something theretofore begun. See also substantial performance doctrine …   Black's law dictionary

  • Cutter v Powell — Court Court of King s Bench Date decided 9 June 1795 Citation(s) (1795) 6 TR 320; 101 ER 573 …   Wikipedia

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