Understanding the Three Standards of Performance in a Contract

The video tutorial explains the standards of performance under a contract, focusing on complete performance, material breach, and substantial performance. Complete performance means fulfilling all contractual obligations, while a material breach occurs when a significant task is left incomplete. Substantial performance involves completing most material duties, with minor tasks unfinished, which may lead to an offset but not a breach. Examples are provided to illustrate these concepts, such as building a house with minor errors in finishing touches.

How can a party be subject to liability even if they have substantially performed their obligations?

Provide an example of a situation that would be considered a material breach of contract.