What happens if a contract is partially performed?

When a contract is partially performed, it means that at least some of the obligations outlined in the contract have been completed, even if the entire contract has not been fulfilled. In such situations, the parties involved typically have the right to seek compensation for the actions that have been executed up to that point. This principle is rooted in the legal doctrine of “quantum meruit,” which allows a party to be compensated for the value of the work or services they have provided, even if the full terms of the contract have not been met.

The possibility of receiving payment for the parts of the contract that have been completed is significant, as it recognizes the effort and resources expended by the performing party. This approach helps ensure fairness and avoids unjust enrichment, whereby one party benefits at the expense of another.

While the other options might suggest scenarios that can arise in different contexts, they do not directly address the reality of partial performance. Maintaining the original contract or requiring redrafting and renegotiation is not necessary when compensation for completed work suffices to resolve the issue at hand.