Powder Room Mess: For $300,000, Willis agrees to build a new home for Robert, who is very picky. Willis builds the home to Robert's specifications with one exception. The faucets and linoleum flooring in an upstairs powder room are not exactly what Robert specified. That was a mistake on Willis's part, but he had not intentionally failed to follow specifications. When Robert sees the powder room, he goes ballistic and tells Willis that he will not pay Willis anything for the house. It will take $300 to put in correct faucets and linoleum. Willis says that he is willing to pay $300 to put Robert in the position he would have been in had the correct faucets and linoleum been used, but that is all he is willing to pay.
- Did Willis breach the contract? If so, was it material breach?
- Which of the following is most likely true regarding Robert's entitlement to damages from Willis?
a. There are no damages because Willis did not breach the contract.
b. Robert will not have to pay for the house because Willis failed to substantially perform.
c. Even though Willis substantially performed, Robert will not have to pay for the house because Willis materially breached the contract.
d. Any damages awarded would be in the range of $300, which is the amount it would take to fix the breach. - Willis's offer to put Robert in the position he would have been in had the proper faucets and linoleum been used is based on the measure used for what type of damages?