Substitute performance

Substitute performance covers different mechanisms by which the creditor receives an equivalent or corrected performance instead of the original one. In Swiss practice the concept appears in warranty law, delay and enforcement: a defective item may be replaced, work may be repaired, or performance may be obtained from a third party at the debtor’s cost where allowed. It must be distinguished from damages in money, which compensate rather than perform. Availability depends on the contract type, the nature of the obligation, proportionality and any agreed remedy clauses.