Question

Building Restoration, Inc. (BRI), enters into a contract to refurbish an old train depot for CasualDining, Inc., to open as Eat Up Restaurant. If BRI completes most of the work promised in the contract, its performance will be
(A) absolute.
(B) complete.
(C) material.
(D) substantial

Answer 1

Answer:

D

Explanation:

Substancial performance is a terminology used in contract law. It actually means the degree of performance of a contract work which is not completely or fully finished,but is so nearly equivalent that it would be unfair to deny the contractor the payment agreed upon in the contract. The owner has a right to recover whatever damages he has incurred by reason of the contractor's failure to render full and complete performance.

Building Restoration must have at least substantially performed the it's side of a bargain before they can call on the CasualDining,Inc to perform the their side of the bargain e.g. by paying an agreed amount. What actually constitute substantial performance depends on the circumstances.