If a party has not substantially performed, what is the typical recovery?

• A. They generally cannot recover damages under the contract but may recover through restitution.
• B. They may recover the full contract price.
• C. They may sue for specific performance.
• D. They may recover punitive damages.

Answer: (A)

When a party has not substantially performed, the contract is breached and the usual path is to limit recovery to restitution rather than the contract price or typical contract damages. Substantial performance determines whether the party is entitled to the full contract price; failing to reach that level means you don’t get paid the contract price and the other party can seek damages for the breach. However, to avoid unjust enrichment, you may recover the value of any benefits you already conferred on the other party through restitution. In short, you don’t recover under the contract itself, but you can seek restitution for what you’ve valuable contributed. Punitive damages and full contract price aren’t appropriate remedies in this scenario, and specific performance is typically not the remedy for a failure to substantially perform.