First Principles of Business Law
Performance and breach of contract

4. Establishing a breach of contract

4.4. Substantial performance

 

 

 

Read the facts and the question and then choose the best answer.

X, a gardening contractor, agrees with the Westmeadows municipal authority, to supply 2000 small tree seedlings to the municipality for $3,000. When delivery is made, X supplies only 1900 seedlings, saying he has no more. The municipal authority says it will not accept any less than the full number of trees. X says that he has substantially performed the contract and his delivery must be accepted.

If, by failing to deliver all the promised trees, X has breached a condition of the contract, is the municipality entitled to reject the delivery of the 1900 seedlings?

(a) Yes. Substantial performance of a condition is less than full performance and it does not have to be accepted even though it is close to complete performance.

(b) No. Although substantial performance of a condition is less than full performance, it is sufficiently close so that it must be accepted and paid for pro rata.

 

 

 

 

 

 

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