Question

ToughBuilders Corp., a construction company, finishes the construction of a house two days after the contract called for its completion. The delay was caused solely due to low productivity. In this scenario, the level of performance of Tough Builders Corp. is recognized as ______.

Answer 1

Answer:

In this scenario, the level of performance of Tough Builders Corp. is recognized as substantial performance.

Explanation:

"This doctrine is used to evaluate the performance in a contract. In order for a party to use this as an argument in a legal dispute, he must prove that he met the standard of substantial performance. If there is a material breach by either party, then substantial performance is not met. The fulfillment of one’s obligations can be met if there is only a slight difference in the exact terms and provisions that are identified in the contract. The test that is used to determine substantial performance is whether the difference or omission in the performance can be compensated for."

Reference: UpCounsel. “Substantial Performance: Everything You Need to Know.” UpCounsel, 2019