What process occurs when the parties to a contract accept partial completion despite not fulfilling all terms?

The term that best describes the situation where the parties to a contract accept partial completion despite not fulfilling all terms is "Partial Performance." In real estate and contract law, this concept acknowledges that even if all conditions of the contract have not been met, the parties can still proceed with the agreement if they accept the work that has been completed so far. This acceptance suggests that the parties recognize the efforts that have been made and are willing to proceed under the assumption that the unfinished aspects can be completed later, or that the partial completion is sufficient to fulfill the contractual obligations within a reasonable scope.

Understanding this concept is crucial, especially in real estate transactions, because it can affect everything from the transfer of property to the enforcement of contracts. Recognizing partial performance can also lead to discussions about compensating for the completed work even if the entire contract isn’t fully executed.

While other terms such as "Substantial Performance" do reflect situations where a contract is close enough to being completed to fulfill the obligations, partial performance specifically emphasizes acceptance of incomplete execution. "Specific Performance" refers to a legal remedy where a party is required to fulfill their contractual duties, often related to unique properties or situations. "Nullification" pertains to situations where a contract is rendered void or unenforce