Book Opener

Earth DayYour local museummay have displays ofwhat scientists believethe earth was likebefore the developmentof modern industrialsociety. Todaythere are concernsthat, because of humanindustry, the earth andits atmosphere are notin good health. As aresult, organizationshave formed to protectthe earth from furtherharm. Members ofthese organizationsbelieve that there is anunbreakable contractwith future generationsto leave those generationsa healthy planet.What concerns youmost about theenvironment?Get InvolvedFind out when EarthDay is celebrated andplan to participate inrelated community orschool events. Writea report on the lawsthat help protect yourdrinking water and airfrom pollution.Satisfactory PerformanceWhen people perform services for others, the law requires that thoseservices be done in a satisfactory manner. Sometimes contracts saynothing about satisfaction; other times, contracts specifically state thatwork must be done “in a satisfactory manner.” In both situations, whenone party believes the job is unsatisfactory, the court uses the reasonableperson test. The court asks, “Would a reasonable person consider the jobto be completed in a satisfactory manner?” The dispute will then be settledbased on the answer to this question as determined by a judge or jury.Occasionally one party will agree to perform services for another “tothe other’s satisfaction.” In such a case, the other party must be satisfiedto be bound to the contract.Example 3. Marc Marcel, an artist, agreed to paint Juleanne’sportrait “to her satisfaction” for $500. When the painting wascompleted, all of Juleanne’s friends, relatives, and acquaintancesthought that it was a perfect likeness of her. However, Juleannethought the portrait was hideous, believing the nose was too longand the mouth too big. In many states, if Juleanne honestly didnot like the portrait, she would not have to pay for it. Because aportrait is a highly personal matter and subject to one’s personaltaste, and because Marcel had agreed to paint it “to her satisfaction,”Juleanne could reject it. However, Juleanne could not keepthe painting if she opted not to pay for it.Substantial PerformanceAs previously noted, both parties must fully perform their parts ofthe bargain to discharge a contract by complete performance. Someonewho has not fully performed his or her duties cannot, in most instances,win a lawsuit against the other party for money owed or other damages.An exception to this rule is known as the doctrine of substantialperformance . Substantial performance is slightly less than full performance.Someone who has fulfilled the major requirements of a contractin good faith, leaving only minor details incomplete, hassubstantially performed. The courts will allow the person to recover theamount agreed upon under the contract, minus the cost of completingthe job. Courts permit recovery if they can determine that it would beunfair to deny payment. The doctrine of substantial performance is oftenapplied to construction contracts.Example 4. Mr. Lucas insists that Ziming Enterprises should teardown and completely rebuild the second floor of his new officebuilding on Michigan Avenue because the construction companyinstalled the wrong type of tile in the bathrooms. Lucas’s attorneycorrectly points out that the doctrine of substantial performance226 Unit 2: Entering Into Contracts