Legal Definitions - substantial-compliance rule

The substantial-compliance rule, also known as the substantial-performance doctrine, is a legal principle that states that if a party makes a good-faith attempt to perform an agreement or meet statutory requirements, but falls short in some way, the performance may still be considered complete if the essential purpose is accomplished. However, the party may still be subject to a claim for damages for the shortfall.

For example, if a contractor is hired to build a house and completes most of the work but fails to install a few minor fixtures, the substantial-compliance rule may apply. The contractor may still be considered to have completed the job if the essential purpose of the agreement, which is to build a livable house, is accomplished.

Another example is in the context of wills. Under the Uniform Probate Code, a will that does not follow all the formalities required by law may still be considered valid if it substantially complies with the requirements. However, this rule is not widely followed.

It is important to note that the substantial-compliance rule only applies to situations where the essential purpose of the agreement or statutory requirement is still accomplished. If the shortfall is significant enough to prevent the essential purpose from being achieved, the rule may not apply.