Under common law, when a party substantially performs, what is the result?

• A. It excused performance
• B. The party must perform
• C. The contract is void
• D. The other party may terminate for convenience

Answer: (B)

Substantial performance means the party has done enough to satisfy the contract’s essential obligations, so the contract isn’t terminated for breach. Because the performance is not perfect, the contract still remains enforceable, and the performing party must complete the remaining duties or cure the defects. They’re entitled to payment for what has been performed, minus damages for the deficiencies. The nonbreaching party cannot terminate the agreement simply due to a minor shortfall; instead, they may seek damages for the shortfall while the contract stays in effect. The other options describe scenarios (excusing performance, voiding the contract, or termination for convenience) that don’t apply when performance is substantial.