Also known as: substantial performance · substantial performance doctrine · substantial compliance
Written by attorneys · grounded in primary & secondary sources — see below
A doctrine under which substantial compliance with formal or procedural requirements suffices to achieve a legal result. The doctrine applies when the actor knew of and intended to satisfy the requirement and the manner of compliance did not impair a material purpose behind the requirement.
Sabrina Shah executed a revocable trust that required revocation by a signed writing delivered to the trustee. Years later she sent an email to the trustee stating her intent to revoke and followed it with a signed letter two weeks afterward. The trustee accepted the revocation and distributed assets accordingly. A court later upheld the revocation because the email and letter together substantially complied with the trust's method.
Sterling Dynamics held a power of appointment that required the instrument of exercise to make specific reference to the power. The donee executed a will that devised the appointive property to named beneficiaries without using the exact reference phrase. The beneficiaries received the property because the donee knew of the power and intended to exercise it without impairing the donor's purpose.
Select any source to read its text and confirm it supports the definition.
Thomas Reed created an irrevocable trust requiring any amendment to be executed by a notarized writing delivered to the trustee. He later signed an unnotarized amendment and delivered it by email attachment. The trustee recorded the change. A court upheld the amendment because Reed knew of and intended to satisfy the formalities and the deviation did not impair any material purpose.
Diana Wells held a power of appointment requiring the will exercising it to make specific reference to the power. Her will devised the appointive assets to named relatives without using the exact reference phrase. The appointees received the property because Wells knew of the power, intended to exercise it, and the omission did not impair the donor's material purpose.
Victor Lane's will required that any codicil be witnessed by two persons who signed in the testator's presence. Lane signed a codicil before one witness and later acknowledged it before a second who signed outside his presence. The court admitted the codicil because Lane knew of and intended to meet the formality and the deviation caused no material impairment.
Substantial compliance satisfies the requirement when the settlor knew of and intended to follow the method and the deviation did not impair a material purpose of the trust terms.
Supporting sources
Yes. The doctrine applies solely to formal requirements imposed by the donor and does not relax requirements imposed by law.
Supporting sources
Courts often apply a substantial performance standard in practice even though the UCC states a perfect tender rule, allowing buyers to reject only for substantial nonconformity.
Supporting sources
Substantial performance occurs when the tenant makes capital improvements clearly referable to the lease terms, such as installing permanent fencing and planting perennial crops for a multi-year agricultural lease.
Supporting sources
…creates privately enforceable duties as held in Whetzel , but that the basic validity of every housing contract depends upon substantial compliance with the housing code at the beginning of the lease term. The Brown court relied particularly upon Section 2501 of the Regulations which provides: “Every premises accommodating one or…