What is the obligation of one party when the other party has substantially performed under a contract?

When one party has substantially performed under a contract, the other party is generally obligated to perform their own contractual obligations. Substantial performance means that the party has fulfilled enough of their contractual duties that the essential purpose of the contract has been achieved, even if there may be minor deviations from the terms. In such cases, the party who has substantially performed is typically entitled to compensation or to receive the benefits of the contract—even if there are some omissions or defects that remain.

This principle ensures that contracts remain enforceable and that parties are encouraged to complete their obligations. It aligns with the legal doctrine of substantial performance, which is a way to balance fairness and accountability in contractual agreements. Therefore, the correct obligation of the other party is to continue performing their part of the contract, even if minor issues exist with the completion of the other party's duties.