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Substantial Performance

Navigation:  Home > Construction Law > Substantial Performance

 

In most contract, strict performance is required - in other words, payment is not made until the contract is fulfilled. For instance, in a automobile purchase deal, payment doesn't have to be made until the car is handed over. However, in the construction context, only substantial performance is required. Thus, if a construction project is substantially completed - i.e. inhabitable, or usable - then payment has to be made. Nevertheless, an owner is permitted to make a reasonable deduction for the cost of achieving full performance. What actually constitute substantial performance depends on the circumstances.

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