Depending on how complex a contract is, sometimes the question is how well a party performed its contract obligations. The more complex a contract, the more certain that at least one party will perform imperfectly. What are the two types of contract performance?
- Strict Performance: A party might say that the other did not strictly performed their obligations. They may be right but courts dislike strict performance because it enables one party to benefit without paying, and sends the other one home emptyhanded. A party is generally not required to render strict performance unless the contract expressly demands it and such a demand is reasonable.
- Substantial Performance: Courts often rely on the substantial performance doctrine, especially in cases involving services as opposed to those concerning the sale of goods or land. In a contract for services, a party that substantially performs its obligations will receive the full contract price, minus the value of any defects. On the other hand, a party that fails to give substantial performance may get nothing. A party that fails to perform substantially receives nothing on the contract itself and will only recover the value of the work, if any.