S contracted to build a machine for F for a price of $8800.00.F paid $1000.00 on account.When the machine was nearly completed,S refused to do more unless F paid another $3000.00.F sued to recover the $1000.00 and for other compensation,and S counterclaimed for the contract price.Expert evidence indicated that the machine was not substantially completed at the time of F's refusal to do more.In this situation at common law
A)F will recover the full $8800.00 even though he defaulted in completing the machine.
B)although the work is not yet completed,a quantum meruit claim can be asserted by S.
C)the contract continues to exist.
D)F's actions together with a failure to complete the machine cancelled the contract,so S will not succeed and must pay back the deposit of $1000.00.
E)none of the above

Question

Quizplus · Accepted Answer

F's actions of refusing to pay unless more work was done and failing to complete the machine can be considered a repudiation of the contract, which would allow S to terminate the contract and seek damages for any work already completed. Additionally, expert evidence indicated that the machine was not substantially completed at the time of F's refusal to pay, further supporting S's counterclaim for the contract price. However, S must still refund the $1000.00 deposit as it was paid on account before any repudiation occurred. Therefore, D is the best choice.

S Contracted to Build a Machine for F for a Price