Substantial performance
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At common law, substantial performance is an alternative principle to the perfect tender rule. 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 successfully demonstrates substantial performance, the owner remains obligated to fulfill payment, less any damages suffered as a result of the deficiencies in workmanship by the contractor.
[edit] Notable cases
- Jacob & Youngs v. Kent 230 N.Y. 239 (1921) — The New York Court of Appeals ruled that a contracted home-builder was entitled to full payment without tearing down and rebuilding the residence, 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.
