[Bathroom Mess] For $300,000, Michael agreed to build a new home for Ashton, who is very picky. Michael built the home to Ashton's specifications with one exception: the faucets and flooring in the upstairs bathroom were not exactly what Ashton specified. That was a mistake on Michael's part, but he did not intentionally fail to follow the specifications. When Ashton saw the bathroom, she went ballistic and told Michael that she would not pay Michael anything for the house. It will take $300 to put in the correct faucets and flooring. Michael responded that he is willing to pay $300 to put Ashton in the position she would have been in had the correct faucets and flooring been used, but that is all he is willing to pay.
-Regarding the appropriate amount of damages, if any, which of the following statements is true regarding the effect of Michael's failure to meet his obligations under the building contract?
A) There are no damages because Michael did not breach the contract.
B) Ashton will not have to pay for the house because Michael failed to perform as required.
C) Even though Michael substantially performed, Ashton will not have to pay for the house because Michael materially breached the contract.
D) Ashton is released from paying for the house because of the anticipatory breach.
E) Any damages awarded would be in the range of $300, the amount it would take to fix the breach.

Question

Quizplus · Accepted Answer

Michael substantially performed the contract with only a minor breach regarding the faucets and flooring. The appropriate measure of damages would be the cost to correct the mistake, which is $300, putting Ashton in the position she would have been had the contract been performed as agreed.

[Bathroom Mess] for $300,000, Michael Agreed to Build a New