Substantial performance
At common law, substantial performance is an alternative principle to the perfect tender rule. This principle is relevant when a contractor's performance is in some way deficient, through no willful act by the contractor, yet is so nearly equivalent that it would be unreasonable for the owner to deny the agreed upon payment. If a contractor successfully demonstrates substantial performance, the owner remains obligated to fulfill payment, less any damages suffered as a result of the deficiencies in workmanship by the contractor.
Notable cases
- Jacob & Youngs v. Kent 230 N.Y. 239 (1921) — The New York Court of Appeals ruled that a contracted homebuilder was entitled to full payment without tearing down and rebuilding the residence, simply because within it he had installed piping equal to, though a different brand name than, that which had been agreed upon in the contract.
- Miles v Wakefield Borough Council [1987] AC 539, Lord Bridge and Lord Brightman reincarnating the doctrine in Cutter v Powell to use against a council registrar who refused to work 3 out of 37 hours, as part of industrial action. They advised the employer that they needed to pay nothing.
- Wilusynski v London Borough of Tower Hamlets [1989] ICR 493, Nicholls LJ holding no "substantial performance" by - and no pay whatsoever for - a council worker on industrial action who did everything but answer enquiries from councillors.
See also