Question

Evans built a house for Sandra Dyer, but the house had some problems. The garage ceiling was too low. Load-bearing beams in the “great room” cracked and appeared to be steadily weakening. The patio did not drain properly. Pipes froze. Evans wanted the money promised for the job, but Dyer refused to pay.

What are your thoughts and comments..elaborate in detail

Answer 1

Answer

This is an issue of substantial performance.

There are 2 kinds of Performances

a) Strict Performance     &    b) Substantial Performance

Strict Performance

Performance that is exactly what promised; is usually not expected and failure to do so does not cause for discharge. That is, The performance of a contract good enough for the contractor to be paid full price less the other party's losses.

Substantial Performance

Substantial performance is a term used in contract law to refer to a degree of performance of a contract which isn't full and complete performance, but is so nearly equivalent that it would be unfair to deny the contractor the payment agreed upon in the contract.

That is, A party that substantially performs its obligations will receive the full contract price, minus the value of any defects. A party that fails to perform substantially receives nothing on the contract and will only recover the value of the work, if any.

CONSIDERING THIS CASE

The low garage ceiling was a minor problem and would not defeat substantial performance.

But,

• The cracked beams were very serious and might require major reconstruction.
• The water collecting in the patio could seep under the house and destroy the foundation.
• The freezing pipes posed a danger of bursting.

The contractor Evans had failed to substantially perform and was not entitled to his contract price. He owed only the value of work completed, if any.

Hope this solution helps:) :)

All the best!