Question 1

If a builder does a terrible job, can they still claim payment under 'substantial performance'?

Accepted Answer

No, probably not. The doctrine of substantial performance only applies to defects that are minor in nature. If the work is fundamentally defective and fails to achieve the main purpose of the contract (like the central heating in *Bolton v Mahadeva*), the court will rule that performance was not substantial. In this case, the builder would not be able to claim any payment under the contract.

Question 2

Does 'substantial performance' mean the innocent party has to accept and pay for faulty work?

Accepted Answer

Not exactly. The doctrine is a balance. The innocent party must pay the contract price, but they are entitled to deduct the amount it would cost to fix the defects (the 'cost of cure'). This ensures they get what they bargained for in monetary terms and are not left out of pocket. The party in breach is paid for the benefit they have conferred, but they are held responsible for their defective performance.

Question 3

Can I always just pay for part of a contract if the other party only does part of the work?

Accepted Answer

No, this is a common misconception. The default assumption in English law is that a contract is 'entire', meaning full payment is only due upon full performance (*Cutter v Powell*). You can only pay for a completed part if the contract is 'divisible' or 'severable' – meaning it was structured from the outset with separate, payable stages. Without evidence of this, partial performance of an entire contract entitles the performer to nothing.

Question 4

What happens if I'm prevented from finishing my work by the person who hired me?

Accepted Answer

If the other party prevents you from completing your performance, they are in breach of contract. You are discharged from your remaining obligations and have two main options: 1) Sue for damages for breach of contract (e.g., for loss of profit), or 2) Claim a reasonable sum for the work you have already done on a *quantum meruit* basis, as in *Planche v Colburn*.

Performance

What you need to know

Performance