5. Common Law Performance Issues

Question 1

Substantial Performance

Answer 1

In common law, if one party substantially performed, the other party is obligated to perform and complete performance.

“Substantial” is usually considered at least halfway complete.

Question 2

Material Breach

Answer 2

Material breach occurs when one party’s failure to perform under the contract substantially deprives the other party of the benefit they bargained for

Question 3

Material Breach:

Answer 3

♣ Material breach by one party excuses performance by the other
♣ Materiality of breach is a question of fact
♣ Damages are recoverable for any breach

Question 4

Material Breach: Time

Answer 4

♣ Failure to perform by the time stated is not a material breach of performance is rendered within a reasonable time after time stated.

EXCEPTION: “time is of the essence” clause