What does the term substantial performance mean? What factors are ...

[chads108]

What does the term substantial performance mean? What factors are generally considered when determining whether one of the parties has substantially performed?

Question 2

In the Bhopal, India, disaster, the Union Carbide subsidiary involved was owned 50.9 by the parent company with headquarters in Connecticut while the other 49.1 was controlled by Indians. The case on behalf of the victims was started in the U.S. The judge dismissed the case saying it should be tried in India because of:
 A) venue.
 B) Rex Nonquam Moritur.
 C) lack of jurisprudence.
 D) Forum Non Conveniens.

[elizabethrperez]

Answer to Question 1

Substantial performance occurs when one party fulfills enough of its contract obligations to warrant payment. In other words, it is performance that is less than perfect, yet it complies with the essential purpose of the contract. In a contract for services, a party that substantially performs its obligations will receive the full contract price minus the value of the defects. The following factors are often considered: How much benefit has the promisee received? If it is a construction contract, can the owner use the thing for its intended purpose? Can the promisee be compensated with money damages for the defects? Did the promisor act in good faith?

Answer to Question 2

D