First Principles of Business Law
Remedies for breach of contract

4. Termination of performance

4.5. Substantial performance

 

 

 

X, a manufacturer, agrees to supply Z, the owner of a new restaurant, with 50 tables and 200 matching chairs. The furniture is to be supplied before the end of the month. X delivers 200 chairs to Z, but only 48 of the tables. X explains that a small fire at his factory damaged two of the tables just before delivery but he says he can make and deliver replacements within two weeks. Z, who has discovered that chairs and tables are available more cheaply from another supplier, says that X has only partially performed what was promised. Z wants to reject all the furniture that X has delivered.

(a) Although X has not performed everything that was promised, his performance is so close to complete performance that Z would have no right to reject the furniture or stop further performance of the contract.

(b) X has not performed everything that was promised, and the law requires complete performance of contractual obligations. Z would be entitled to reject the furniture and put a stop to any further performance of the contract.

 

 

 

 

 

 

  

 

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