Bar Exam — MBE (Multistate Bar Exam)ContractsMedium

A client contracted with an artist to paint a mural on the exterior wall of his business for $5,000. The contract specified the artist would use a particular brand of weather-resistant paint. Before starting, the artist discovered that brand was no longer available but found a different brand with identical weather-resistant properties and an equivalent quality, which he used without informing the client. The client, upon seeing the completed mural, recognized the paint brand was not the one specified and refused to pay. Is the client's refusal to pay justified?

  1. ANo, because the substitute paint was of equivalent quality and properties.
  2. BNo, because the artist substantially performed the contract.
  3. CYes, because the artist breached the contract by not using the specified brand of paint.
  4. DYes, because the client did not consent to the change in paint brand.
Show answer & explanation

Correct answer: B. No, because the artist substantially performed the contract.

Under the doctrine of substantial performance, a party who has performed most of the work required by a contract, in good faith, but with only minor deviations, is entitled to payment, less any damages caused by the deviation. Here, the artist used an equivalent paint, achieving the main purpose of the contract, which is a minor deviation.

Why the other options are wrong

  • A. The equivalent quality and properties support the argument for substantial performance, but the legal basis for the client's obligation to pay is the doctrine of substantial performance, not merely the equivalence of the substitute.
  • C. While there was a deviation, it was minor and did not defeat the purpose of the contract, thus not a material breach justifying refusal to pay entirely.
  • D. Consent is ideal, but for minor, non-material deviations, lack of consent alone does not typically justify a complete refusal to pay if substantial performance has occurred.

Substantial Performance (Common Law)

A doctrine in common law contracts stating that if a party performs most of their contractual duties in good faith, with only minor deviations, they are entitled to the contract price less any damages caused by the deviation.

  • Applies to common law contracts (services, construction).
  • Requires good faith effort.
  • Deviations must be minor and non-material.
  • Entitles performing party to payment, minus damages for the deviation.

Memory trick: Breach or substantial? Look for the 'S' of purpose fulfilled and 'M' of minor mistakes.

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