Chapter 20

Substantial Performance and Material Breach

Module VI: Performance & Breach

This chapter distinguishes trivial defects from material failures and asks when performance is good enough to demand the other side’s return performance. Faramir’s Choice highlights the difficult judgments involved when loyalty, purpose, and imperfect compliance pull in different directions.

Doctrinal map

At common law, substantial performance of an entire contract satisfies the constructive condition of exchange and entitles the performer to recover the contract price minus damages for the deficiency (R2d §§ 234–237; Jacob & Youngs v. Kent). Under the UCC, the perfect-tender rule (§ 2-601) controls for goods, subject to cure (§ 2-508). The student should leave able to apply both regimes and explain when each governs.

Key Sources

Key Rules

Cases

Exercise: Faramir's Choice →