Also known as:full performances · complete performance
Written by attorneys · grounded in primary & secondary sources — see below
The completion of every obligation required by a contract. Full performance discharges the performing party's duties under the agreement.
Sources & Authorities· 3 primary sources
Select any source to read its text and confirm it supports the definition.
Uniform Acts
Restatements
How it applies
Common Examples
6
Supplier Completes All Deliveries
Freeman Engineering agreed to supply Flagship Logistics with 500 custom parts by a set date. Freeman delivered every part on schedule and in perfect condition. Flagship's duty to pay the full contract price was discharged because Freeman had rendered full performance.
Performer Begins and Completes Work
Frostline Textiles offered to pay Felicity French $10,000 if she produced a full line of sample garments. French began sewing the samples and finished every garment exactly as specified. Her tender of complete performance created a binding promise by Frostline to pay the stated amount.
Forrest Falconer contracted to build a home for Freya Freeman using a specific brand of pipe. Falconer installed pipe of identical quality from another maker. Because the substitution prevented literal full performance, Falconer could not invoke discharge under the full-performance rule.
Jacob & Youngs v. Kent230 N.Y. 239, 129 N.E. 889 (1921)
Insurer Refuses to Defend Suit
Falcon Dynamics purchased liability coverage from Flagship Logistics' insurer. The insurer refused to defend a covered claim and forced the company to settle above policy limits. Because the insurer never rendered full performance of its defense duty, it remained liable for the excess judgment.
Comunale v. Traders & General Ins. Co.50 Cal. 2d 658
Cost Increase Prevents Completion
Aluminum Company of America contracted to supply Essex Group with aluminum at a fixed price tied to production costs. A massive unforeseen rise in energy prices made continued production commercially impracticable. Because full performance became impossible, the court excused the supplier from completing its contractual duties.
Aluminum Company of America v. Essex Group, Inc.499 F. Supp. 53 (W.D. Pa. 1980)
Buyer Cancels Boat Order
Felicia Fuentes ordered a custom boat from Retail Marine Corp. and paid a deposit. She later repudiated the contract before the boat was finished. Retail Marine recovered the profit it would have earned from full performance by the buyer together with incidental damages.
Neri v. Retail Marine Corp.30 N.Y.2d 393, 399 & n. 2, 384 N.Y.S.2d 165, 169 & n. 2, 285 N.E.2d 311, 314 & n. 2 (1972)
Common questions
Frequently Asked
3
Does full performance by one party discharge that party's duties under the contract?+
Yes. When a party completes every obligation required by the contract, its duties are discharged and the other party must perform its side of the bargain.
Supporting sources
What happens if a party begins performance on a unilateral contract offer?+
Beginning the invited performance operates as acceptance and creates a promise to render complete performance, making the offer irrevocable.
Supporting sources
Does impossibility ever prevent a party from achieving full performance?+
Yes. When an unforeseen event renders completion of the contract excessively burdensome or literally impossible, the law may excuse the duty so that full performance is no longer required.
Supporting sources
230 N.Y. 239, 129 N.E. 889 (1921)Remedies
…in its relation to the project. The courts never say that one who makes a contract fills the measure of his duty by less than full performance. They do say, however, that an omission, both trivial and innocent, will sometimes be atoned for by allowance of the resulting damage, and will not always be the breach of a condition to be…