At common law

Common law

Common law is law developed by judges through decisions of courts and similar tribunals rather than through legislative statutes or executive branch action...

, substantial performance is an alternative principle to the perfect tender rule

Perfect tender rule

The perfect tender rule refers to the legal right for a buyer of goods to insist upon "perfect tender" by the seller. In a contract for the sale of goods, if the goods fail to conform exactly to the description in the contract the buyer may reject the goods...

. This principle is relevant when a contractor's performance is in some way deficient, through no willful act by the contractor, yet is so nearly equivalent that it would be unreasonable for the owner to deny the agreed upon payment. If a contractor

General contractor

A general contractor is responsible for the day-to-day oversight of a construction site, management of vendors and trades, and communication of information to involved parties throughout the course of a building project.-Description:...

 successfully demonstrates substantial performance, the owner remains obligated

Obligation

An obligation is a requirement to take some course of action, whether legal or moral. There are also obligations in other normative contexts, such as obligations of etiquette, social obligations, and possibly...

 to fulfill payment, less any damages suffered as a result of the deficiencies in workmanship by the contractor.

Notable cases

• Cutter v Powell
  Cutter v Powell
  Cutter v Powell 101 ER 573 is an English contract law case, concerning substantial performance of a contract.-Facts:Mr T Cutter agreed he would sail with Powell from Kingston, Jamaica to Liverpool, England. The contractual note read as follows....
  
  (1795) 101 ER 573

• Sumpter v Hedges
  Sumpter v Hedges
  Sumpter v Hedges [1898] 1 QB 673 is an English contract law case, concerning substantial performance of a contract and restitution for unjust enrichment.-Facts:...
  
  [1898] 1 QB 673

• Jacob & Youngs v. Kent
  Jacob & Youngs v. Kent
  Jacob & Young, Inc. v. Kent, 230 N.Y. 239 is a famous contract law case with the majority opinion by Judge Cardozo. It dealt with the matters of material breach and substantial performance.-Facts:...
  
  230 N.Y. 239 (1921) — The New York Court of Appeals
  New York Court of Appeals
  The New York Court of Appeals is the highest court in the U.S. state of New York. The Court of Appeals consists of seven judges: the Chief Judge and six associate judges who are appointed by the Governor to 14-year terms...
  
   ruled that a contract
  Contract
  A contract is an agreement entered into by two parties or more with the intention of creating a legal obligation, which may have elements in writing. Contracts can be made orally. The remedy for breach of contract can be "damages" or compensation of money. In equity, the remedy can be specific...
  
  ed homebuilder was entitled to full payment without tearing down and rebuilding the residence
  House
  A house is a building or structure that has the ability to be occupied for dwelling by human beings or other creatures. The term house includes many kinds of different dwellings ranging from rudimentary huts of nomadic tribes to free standing individual structures...
  
  , simply because within it he had installed piping equal to, though a different brand name than, that which had been agreed upon in the contract.

• Hoenig v Isaacs
  Hoenig v Isaacs
  Hoenig v Isaacs [1952] is an English contract law case, concerning substantial performance of an entire obligation.-Facts:Mr Hoenig was meant to decorate and furnish Mr Isaac’s flat for £750. When the work was done, there were problems with a bookcase and wardrobe, which would cost £55 to fix...
  
  [1952] EWCA Civ 6, 2 All ER 176
• Bolton v Mahadeva
  Bolton v Mahadeva
  Bolton v Mahadeva [1972] 2 All ER 1322 is an English contract law case, concerning substantial performance of an obligation.-Facts:Mr Walter Charles Bolton installed central heating for £560 in Mr T Mahadeva’s house. It was too cold, the heat came unevenly and it all gave off fumes. Bolton refused...
  
  [1972] 2 All ER 1322

• Miles v Wakefield Borough Council [1987] AC 539, Lord Bridge and Lord Brightman reincarnating the doctrine in Cutter v Powell to use against a council registrar who refused to work 3 out of 37 hours, as part of industrial action. They advised the employer that they needed to pay nothing.
• Wilusynski v London Borough of Tower Hamlets [1989] ICR 493, Nicholls LJ holding no "substantial performance" by - and no pay whatsoever for - a council worker on industrial action who did everything but answer enquiries from councillors.

See also

• Contract law
• Force majeure
  Force majeure
  Force majeure or vis major "superior force", also known as cas fortuit or casus fortuitus "chance occurrence, unavoidable accident", is a common clause in contracts that essentially frees both parties from liability or obligation when an extraordinary event or circumstance beyond the control of...
  
  
• Hardship clause
  Hardship clause
  Hardship clause is a clause in a contract that is intended to cover cases in which unforeseen events occur that fundamentally alter the equilibrium of a contract resulting in an excessive burden being placed on one of the parties involved....
  
  
• Hell or high water clause
  Hell or high water clause
  A hell or high water clause is a clause in a contract, usually a lease, which provides that the payments must continue irrespective of any difficulties which the paying party may encounter . The clause usually forms part of a parent company guarantee...
  
  
• Impossibility
  Impossibility
  In contract law, impossibility is an excuse for the nonperformance of duties under a contract, based on a change in circumstances , the nonoccurrence of which was an underlying assumption of the contract, that makes performance of the contract literally impossible...
  
  
• Mutual assent