Buildwell Construction Company contracted to build a house for William. The spec

Question

Buildwell Construction Company contracted to build a house for William. The specifications called for the use of Karlene Pipe for all plumbing. Buildwell, however, got a better price on Boynton Pipe and substituted the equally good Boynton Pipe for Karlene Pipe. Upon inspection, William discovered the change, and he now refuses to make the final payment. The contract price was for $200,000, and the final payment is $20,000.

1. Highlight the pertinent facts;

2. Identify the issue of law and/or fact posed by the case problem;

3. What should be the decision in the case?

4. The reasoning for such decision.

Explanation / Answer

-Contract to build a house

-Specification to use Karlene pipe in the contract

-Buildwell substituted Boynton Pipe for Karlene Pipe

2.Here the issue of law by the above case will be Material breach of conduct. A material breach of conduct refers to failure in performing the obligations promised in the contract

3 & 4 The Judgement will be in favour of Buildwell Construction company.. Since the substitution of equally another pipe did not qualitatively alter the house value, there is no situation for material breach here. So William needs to make the final payment .

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