1- Beth entered into an agreement to remodel Horace\'s house for $450,000. Beth
ID: 360973 • Letter: 1
Question
1- Beth entered into an agreement to remodel Horace's house for $450,000. Beth developed her plans and had them approved by Horace. Beth then began ordering supplies and hiring sub-contractors to perform the work. Beth worked on the alterations during a six-month period while Horace was located in Iraq for work. She specifically agreed to "complete the project on or before Nov. 20, 2013 in anticipation of your return from Iraq."
Horace returned on November 23 and went to see his house. While he was there, he noted that Beth had not completed all of the work in a satisfactory manner.
a) Beth had not installed a new air conditioning unit in the house. The agreement had specified a $30,000 high-efficiency system.
b) Beth's painters had painted the rooms but Horace looked at the results and simply said, "they are not good enough for my tastes. I am a person who takes great pride in the appearance of my home." The day before, two city building inspectors had toured the home and approved all of the work. They had specifically asked Beth who she used for the "excellent paintwork."
Because of the two items, Horace declared Beth was in breach of contract. He refused to pay any of the $420,000 amounts because Beth had not performed the work. Beth offered to install the missing air conditioning system but claimed the painters did a "very professional job."
Explanation / Answer
As per the agreement, Beth agreed to complete the project on or before November 20, 2013. But, Beth could not complete the entire work, as he could not finish fitting the new air conditioning unit in the house worth $30,000. Here, Beth has breached the contract. Since there were no compensatory charges that were applicable in case of the breach of the contract, Horace is supposed to pay for the work done, barring the air conditioning charges.
Secondly, when Beth had developed plans and took approval for the same from Horace, Horace should tell what are his tastes and what does he like or dislike. Since there was no formal agreement or approval on Horace's likes, Horace cannot blame Beth for not painting the house in his choice. He should have clearly mentioned everything (including colours, special colurs, special textures etc) of his choice and likes in the agreement for a better clarity for the contractor. Since none of the directions have been given by Horace, then he cannot simply claim that it is not as per his taste.
Lastly, if the work had been sub-standard, city building inspectors would not have given positive remarks on the paint work. If it would have been that bad, then they would not have said that Beth used "excellent paintwork". Therefore, Horace has to pay $420,000 to Beth for all the changes and remodelling that has been performed in his house.
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