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A contractor built a porch for a homeowner. The porch was safe, usable, and matched the plans except for a small section of railing that used the wrong decorative pattern. Replacing the railing would cost $600 on a $30,000 contract. The homeowner refused to pay anything.
Which statement is most accurate under common-law substantial performance?

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The contractor can recover only if the owner subjectively liked the work. The owner must pay full price with no deduction whenever the contractor acted in good faith. If the contractor substantially performed, the owner must pay the contract price minus damages for defects rather than refuse all payment. The owner may refuse to pay anything because any defect is a material breach.

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