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Contracts: CONDITIONS

Terms in this set (11)

123.
Assume that the specifications for the woman's home in Question 115 stated that the contractor was to use exclusively "Acme No. 63" bricks in constructing the circular fireplace, hearth, and chimney. When the contractor ordered the bricks, his supplier told him he did not have a sufficient inventory of Acme No. 63 bricks to fill the order, and would not have them for another three weeks, which would set the construction schedule back considerably. The contractor found another style of brick, Brown No. F-17, which appeared to be identical in every respect to Acme No. 63 bricks, except that they had "Brown," rather than "Acme," molded into the face of each brick. Because the contractor intended to install the bricks so that the "logoed" side of the bricks was not showing anyway, he ordered a sufficient supply of Brown No. F-17 bricks to timely complete the job.Did the contractor materially breach its contract by using Brown bricks instead of Acme bricks?

(A) Yes, because the contractor's use of Brown bricks,
rather than Acme bricks, substantially deprived the
woman of the benefit of her bargain.
(B) Yes, because the contractor cannot adequately
compensate the woman for any diminution in the value
of the house to the woman as a result of the contractor's
use of Brown bricks rather than Acme bricks.
(C) Yes, because the contractor's substitution of Brown
bricks for Acme bricks was inconsistent with the
contractor's duty of good faith and fair dealing.
(D) No, because the contractor's use of Brown bricks when
Acme bricks proved to be unavailable in adequate
quantities did not substantially deprive the woman of
the benefit of her bargain, was consistent with the
contractor's duty of good faith and fair dealing, and the
contractor can adequately compensate the woman for
any diminution in the value of the house as a result of
the contractor's use of Brown bricks rather than Acme
bricks.