Question

For $300,000, Willis agrees to build a new home for Robert, who is very picky. Willis builds the home to Robert's specifications with one exception. The faucets and linoleum flooring in a powder room are not exactly what Robert specified. That was a mistake on Willis' part, but he had not intentionally failed to follow specifications. When Robert sees the powder room, he goes ballistic and tells Willis that he will not pay Willis anything for the house. It will take $300 to put in correct faucets and linoleum. Willis says that he is willing to pay $300 to put Robert in the position he would have been in had the correct faucets and linoleum been used, but that is all he is willing to pay. Which of the following is true regarding whether Willis breached the contract?a) Willis did not breach the contract.b) Willis materially breached the contract.c) Willis substantially breached the contract.d) Willis breached the contract, but the breach was not material.e) Willis committed an anticipatory breach of the contract

Answer 1

Answer:

d. Willis breached the contract, but the breach was not material.

Explanation:

Willis agree to built a new home for Robert. The contract price was $300,000. Robert specified the features for the new home and since he is very picky he did not wanted to compromise on the specification he decided. Willis made a mistake and faucets and linoleum flooring are not exactly what Robert specified. The amount required to put the faucet back to its condition which Robert specified is $300 which is 1 percent of the total contract amount. The amount of breach is not material but Willis has breached the contact with Robert.