Substantial Performance

• Promisor must perform to at least a certain level, or else promisee has no reason to perform her return promise.
• Substantial Performance:
  • Sometimes performance is deficient, not by the will of the promisor, but does not destroy the value or purpose of the contract.
• Common Law: There is no breach as long as there is substantial performance
  • Damages may need to be paid (can be sued for damages), but the opposing party must follow thorough with her promise as long as there is substantial performance
  • Ex. GuitarMan promises to build Stephanie a guitar with 6 strings and a gold neck.  Stephanie promises to pay GuitarMan $5,000 once GuitarMan finishes the guitar. GuitarMan builds the guitar with 6 strings and a gold neck, but it is not playable.  Stephanie expected the guitar to be completed by May 8th, so she booked to play for 5 hours at Blue Bar House. However, because the guitar was not playable, she lost the booking and was blacklisted by the venue. Stephanie sues GuitarMan for damages, but Stephanie must pay GuitarMan the amount Stephanie promised to pay for the guitar because there was substantial performance.