M Civ JI 142.20 Breach of Contract/Substantial Performance

Each party to a contract has a duty to perform his or her obligations under the contract. A contract is breached or broken when a party does not substantially perform what the party promised to do in the contract. When I say that [ name of party being sued on contract ] must have “substantially performed” the contract or that “substantial performance” of the contract is required, I mean that, although there may have been some deviations or omissions from the performance called for by the language of the contract, [ name of party ] received the important and essential benefits for which the contract was made. The extent of nonperformance is to be viewed in light of the full performance promised. If the defect or uncompleted performance is of such extent and nature that there has not been practical fulfillment of the terms of the contract, then there has not been substantial performance. A party who substantially performs may be required to pay as damages the costs of remedying any defects in performance.

Comment

Gordon v Great Lakes Bowling Corp, 18 Mich App 358 (1969); P & M Construction Co v Hammond Ventures, Inc, 3 Mich App 306 (1966).

History

M Civ JI 142.20 was added March 2005.