Perry Is Building His House and Orders a Hot Water

Perry is building his house and orders a hot water heater from Jones Co. to be installed by them. The hot water heater they sent has a 45-gallon capacity, but Perry had ordered a 60-gallon capacity. Jones cannot provide a 60-gallon heater for two months, so Perry cancels the contract and gets a heater from another company. Jones Co. says it must be allowed to install the replacement heater. What result?

A) Jones wins; Perry can only cancel the portion of the contract regarding the goods.
B) Jones wins; Perry can only cancel if installation is also delayed two months.
C) Perry wins since the contract breach concerns the whole contract.
D) Perry can cancel the whole contract, but he is then limited in his recovery of damages.