Erwick now brings suit seeking the $20,000. Will Erwick succeed in its claim? Explain.
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Erwick Construction Company contracted to build a house for Charles. The specifications called for the use of Karlene Pipe for all plumbing. Erwick, however, got a better price on Boynton Pipe and substituted the equally good Boynton Pipe for Karlene Pipe. Upon inspection, Charles discovered the change, and he now refuses to make the final payment. The contract price was for $200,000, and the final payment is $20,000. Erwick now brings suit seeking the $20,000. Will Erwick succeed in its claim? Explain. |
Explanation
Even if Organization E deviated from the choice of Individual C for material specified under contract in the given case, the organization used material that was substantially as good as what the individual had bargained for. The substitute here can be compared and held equal in terms of quality, which does not deteriorate the value of the house. As a result, there is no material breach. So, Individual C is going to have to fulfill the obligations under the contract since there is an absence of material breach.
The change in material does not lead to any damages to the individual. If there were any such damages, Individual C would have been capable of recovering the same.
Verified Answer
Organization E is going to be successful in claiming since this case does not involve material breach.
