Contracts
What is 'substantial performance' doctrine and does it apply in Illinois real estate contracts?
AThe doctrine that a party who has substantially completed their obligations is entitled to payment, less any offset for the incomplete portion✓ Correct
BA doctrine requiring that major construction be substantially completed before transfer
CIllinois does not recognize substantial performance; all obligations must be fully met
DA clause in construction contracts requiring 95% completion before final payment
Explanation
Substantial performance is a common law doctrine holding that a party who has performed most of their contractual obligations in good faith is entitled to the contract price, minus any damages for the incomplete or defective performance. In real estate, this may arise in construction contracts where a contractor has substantially (but not perfectly) completed work. The property owner cannot refuse payment entirely but may offset the damages caused by incomplete performance.
Related Illinois Contracts Questions
- In Illinois, a listing agreement is a contract between the seller and the:
- What is 'mutual rescission' of a real estate contract in Illinois?
- Specific performance is a legal remedy in real estate that requires:
- A real estate purchase contract that contains a contingency for the buyer to sell their current home is known as a:
- A bilateral contract in real estate is one in which:
- Which of the following would make a real estate contract voidable?
- Which of the following is NOT a required element for a valid real estate contract in Illinois?
- In contract law, 'consideration' is best defined as:
Practice More Illinois Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Illinois Quiz →