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Breach, Repudiation & Excuse

Contracts · NextGen Bar Exam single best answer

A contractor agreed to renovate a bakery's kitchen for $80,000, and the specifications named a particular brand of stainless-steel countertops. The contractor instead installed a different brand of identical grade, thickness, and price; the owner noticed the substitution only after the job was finished, and everything else conformed perfectly. Displeased about the switch, the owner now refuses to pay the contractor anything at all for the renovation.

In the contractor's suit for payment, what is the most likely result?

  1. AOption A. Correct answer. The contractor recovers the price minus any proven difference in value.Correct
  2. BOption B. Incorrect answer. The contractor recovers nothing, having failed to install the exact brand named.
  3. COption C. Incorrect answer. The owner may reject the whole job, because the work was not a perfect tender.
  4. DOption D. Incorrect answer. The owner must pay the full price with no deduction, since the breach was minor.

Why

Substantial performance is the common-law rule for services and construction: a builder who delivers the essence of the bargain with only a trivial, good-faith deviation has not materially breached and may enforce the contract, recovering the price minus the value of the defect. The substituted counters were identical in grade, thickness, and price, and the owner did not even notice — a textbook trivial deviation — so the contractor wins and the deduction is essentially nominal (A). B applies a strict exact-compliance rule that the common law rejects outside the sale of goods. C imports the UCC's perfect tender rule, which governs goods, not a renovation contract. D is a trap: even a minor breach lets the injured party offset its damages, so the owner is not forced to pay the full price with no deduction.

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