If a party has substantially complied or performed with a constructive condition, what can the party recover?

• A. The party can recover the contract price minus any amount that it will cost the other party to obtain the promised full performance.
• B. Substantial compliance always yields the full contract price.
• C. Substantial compliance yields no recovery.
• D. Substantial compliance allows only restitution.

Answer: (A)

When performance is substantially complete, the goal is to put the performing party in the position they would have been in if full performance had occurred, but without rewarding noticeable defects. The typical remedy is the contract price minus the reasonable cost the other party would incur to obtain the promised full performance. In other words, you get paid for what you delivered, reduced by the cost to finish or cure the remaining gaps.

That’s why the best choice is the option that says you can recover the contract price minus the amount it would cost the other party to obtain full performance. The other options overstate or understate the remedy: you don’t get the full price automatically, you don’t get no recovery, and it isn’t limited to restitution only.