Late Completion: What remedy does the innocent party have when completion fails to take place on the contractual date?

• A. Serve notice to complete on the other party specifying a future date
• B. Rescind immediately
• C. Accept late completion
• D. Take legal action for damages only

Answer: (A)

When completion is late, the key step is to give the other party one last opportunity to perform by issuing a notice to complete. This notice specifies a new, future date by which completion must take place. It keeps the contract alive while pushing for performance and sets the stage for any further action if that new date is missed. If completion occurs by that date, everything proceeds as planned; if not, the innocent party can treat the contract as at an end and may pursue damages or other remedies.

Rescinding immediately isn’t appropriate because the contract is not automatically terminated at the original date; a formal notice to complete is the standard first move. Accepting late completion would waive the breach and lose the opportunity to enforce the original terms. Taking action for damages only is possible, but the proper initial remedy is to serve a notice to complete to allow one final chance to perform.