Arkansas
How Applying v. State of Louisiana applies in Arkansas: state-specific rules, key cases, and bar exam notes for Contracts.
Arkansas follows the principle that contract performance may be deemed acceptable based on substantial compliance rather than strict adherence to contract terms. This principle allows for remedies to be enforced when a party demonstrates that their deviations from the contract did not significantly undermine its purpose.
Under Arkansas law, a party may recover for breach of contract only when they have substantially complied with the obligations of the contract, and a material breach by the other party has occurred.
The Arkansas Supreme Court held that substantial performance allows a contractor to recover payment when the overall purpose of the contract has been met despite minor defects.
In this case, the court ruled that minor variances from a contractual obligation do not prevent recovery if the outcome still fulfills the intended purpose of the contract.
The court determined that a breach occurring due to a de minimis deviation does not warrant forfeiture of the non-breaching party's rights under the contract.
Similar to federal contract law, Arkansas recognizes the doctrine of substantial performance. However, Arkansas case law emphasizes a more generous interpretation of what constitutes substantial compliance compared to some federal rulings, which may demand stricter adherence to contract terms.
Aspiring lawyers should be familiar with Arkansas's emphasis on substantial compliance as it may appear in exam questions related to contracts, particularly in the context of breach and remedies.