Performance Issues in Common Law Contracts

Question 1

Substantial Perfromance

Answer 1

If one party has substantially perfromed, the other party is obligated to perfrom and complete perfromance.

Substantial is usually considered less than half.

Question 2

Material Breach

Rules concerning connom law breach

Answer 2

• Material breaches by the other party excuses perfromance
• Substantial breach ≠ material breach
• Materiality of breach is a question of fact
• Damages are recoverable for any breach

Question 3

Material Breach

Timeliness of Performance

Answer 3

• Failure to perfrom by the time stated in contract is not a material breach if performance is rendered within a reasonable time after the time stated.
  
  • Exception – Time is of the essence
    
    • Material breach

Material breach rules do not apply to UCC