Also known as: substantial compliance · substantially comply · substantially complied · substantially complying · substantial performance
Written by attorneys · grounded in primary & secondary sources — see below
A doctrine permitting a party to satisfy formal requirements imposed by statute, contract, or instrument through actions that achieve the underlying purpose even if not strictly following the prescribed method.
Simone Sanders, the settlor of a revocable trust, sends a signed letter to the trustee stating her intent to revoke but omits one procedural detail listed in the trust terms. The trustee receives the letter and understands the revocation. Because the letter substantially complies with the method provided in the trust, the revocation takes effect and the trust terminates.
Spencer Silver, the donee of a power of appointment, executes a will that exercises the power but fails to include the exact reference language required by the donor. Spencer knew of the power and intended to exercise it, and the omission does not impair any material purpose of the donor. The appointment is therefore valid under the substantial compliance standard.
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Samantha Stone is named trustee in a trust instrument that requires acceptance by signing a formal form kept at the settlor's office. Samantha never signs the form but takes delivery of trust property, exercises trustee powers, and performs duties. Her conduct substantially complies with the acceptance method, so she is bound as trustee.
The test applies when the party substantially complies with a method provided in the trust terms or, if no method is specified or exclusivity is not required, when the party indicates acceptance through conduct such as exercising powers or performing duties.
No. The test focuses on whether the donee knew of and intended to exercise the power and whether the manner of exercise impaired a material purpose of the donor. It does not require the appointee to fall within any equitable-favored class.
The trustee is deemed to have rejected the trusteeship. Substantial compliance through conduct is available only when the trust terms do not make the signature method exclusive.