Which option describes termination when one party has substantially performed the contract but has not completed every detail exactly as required?

• A. By performance
• B. Substantial performance
• C. Mutual agreement
• D. Accord & satisfaction

Answer: (B)

Substantial performance means a party has carried out their duties in good faith to nearly complete the contract, with only minor, nonessential details left unfulfilled. Because those small gaps don’t go to the heart of the agreement, the contract is treated as discharged overall, and the performing party is typically entitled to payment minus the cost to cure the defects. This fits the scenario where one side hasn’t nailed every detail exactly, but has fulfilled the essential promises. If it were complete performance, there wouldn’t be any need to finish or cure anything. The other common options describe endings that require full agreement, or a separate settlement, which isn’t what’s at issue here.