Bar Exam — MBE (Multistate Bar Exam)ContractsEasy
A painter agreed to paint a portrait for a client for $1,000. The contract specified that the painting must be 'to the client's personal satisfaction.' After the painter completed the portrait, the client genuinely stated that he was not satisfied with the likeness, even though friends and family thought it was an excellent depiction. The client refused to pay. Is the client's refusal to pay justified?
- AYes, because the painter failed to achieve perfect tender.
- BNo, because the painter substantially performed the contract.
- CYes, because performance was subject to the client's genuine personal satisfaction.
- DNo, because a reasonable person would be satisfied with the portrait.
Show answer & explanationAnswer & explanation
Correct answer: C. Yes, because performance was subject to the client's genuine personal satisfaction.
When a contract involves matters of personal taste, a 'satisfaction clause' is generally interpreted as requiring the subjective, genuine satisfaction of the party for whose benefit the clause was inserted. Since the client genuinely stated dissatisfaction, their refusal to pay is justified.
Why the other options are wrong
- A. The perfect tender rule applies to contracts for the sale of goods under the UCC, not typically to service contracts involving personal taste.
- B. Substantial performance applies to objective performance standards, not typically to subjective personal taste satisfaction clauses.
- D. For matters of personal taste, the standard is subjective satisfaction, not a reasonable person standard.
Satisfaction Clause (Personal Taste)
A contract term making performance conditional on the personal satisfaction of one of the parties, typically applied when the subject matter involves aesthetic judgment or personal preference.
- Applies to contracts involving personal taste or aesthetic judgment.
- Requires subjective, genuine dissatisfaction (not feigned).
- Contrast with objective satisfaction (reasonable person standard) for mechanical fitness or utility.
- If genuine dissatisfaction, the condition is not met, and payment is not due.
Memory trick: Conditions of a contract? 'S' for satisfaction, 'P' for precedent, 'C' for concurrent.