To determine whether a party's performance is substantial,courts:
A) perform a two-part test.
B) have no precise test, but look to factors such as how much benefit the promisee received, whether the promisor acted in good faith, whether the promisee can be compensated with money damages, and if a construction contract is involved whether the owner can use the object of the contract for its intended purpose.
C) use a precise test involving what percentage of performance has been completed.
D) look strictly to the parties' contract and follow the intent evidenced in that document.

Question

Quizplus · Accepted Answer

Courts do not have a precise test for determining whether a party's performance is substantial, but they consider factors such as the benefit received by the promisee, whether the promisor acted in good faith, whether the promisee can be compensated with money damages, and whether the owner can use the object of the contract for its intended purpose (in the case of a construction contract).

To Determine Whether a Party's Performance Is Substantial,courts