Complete performance of the duties required under a contract is the most common way to terminate those duties. Describe three situations in which-less-than complete performance may be acceptable.

Question

What will be an ideal response?

Answer 1

Conditions expressly stated in a contract must be fully satisfied for complete performance to take place. There are three situations, however, in which less-than-complete performance may be acceptable:•Substantial performance-A party who in good faith performs substantially all of the terms of a contract can usually enforce the contract against the other party under the doctrine of substantial performance. Generally, performance that provides a party with the important and essential benefits of a contract, in spite of any omission or deviation from the terms, is substantial performance. Because substantial performance is not perfect, the other party is entitled to damages to compensate for the failure to comply with the contract.•Impossibility of performance-After a contract has been made, performance may become impossible in an objective sense ("it can't be done," rather than "I can't do it").For example, the subject matter of the contract may be destroyed, one of the parties to a personal contract may die or become incapacitated prior to performance, or performance may become illegal because of a change in the law. In these situations, the law excuses parties from their contractual performance.•Commercial impracticability-Under this doctrine, courts may excuse parties from their performance obligations when the performance becomes much more difficult or expensive than contemplated at the time the contract was formed. For someone to invoke this doctrine successfully, however, the anticipated performance must become extremely difficult or costly.