Andrew, a carpenter, entered into a contract with Steven for the construction of a garage on Steven's property for $5,000. Andrew had constructed the entire garage except for a small door, when he refused to complete the contract. Andrew has substantially performed his part of the agreement and would be entitled to payment of the contract price, less the amount necessary to finish the building.

Question

Quizplus · Accepted Answer

Substantial performance occurs when a party has completed the major requirements of a contract, albeit with minor deviations or omissions. In this case, Andrew has built the entire garage except for a small door, which constitutes substantial performance. He is entitled to the contract price minus the cost to complete the minor unfinished part.

Andrew, a Carpenter, Entered into a Contract with Steven for the Construction