Contracts
Substantial Performance
Definition
Substantial performance is a doctrine that allows a party who has performed in good faith but with minor deviations to recover on the contract, minus damages for the deficiency. This doctrine prevents the unjust result of total forfeiture when the breach is trivial. It applies primarily in construction contracts and other contexts where perfect performance is impractical. The breaching party must not have willfully deviated from the contract terms.
Example
A contractor builds a house per specifications but installs a different but functionally equivalent brand of pipe. The contractor has substantially performed and may recover, minus the cost of the deviation.