Jessica Hires Bob Builders to Construct a House for Her

question 78

Multiple Choice

Jessica hires Bob Builders to construct a house for her. The contract specifies that grade A+ carpeting is to be installed on the entire second floor. Bob accidentally installs grade A shag carpeting instead. Few people except for carpeting experts can tell the difference. Jessica, however, refuses to pay for the construction citing that Bob has breached the contract. Which of the following is true of this situation?

• A) This would likely be considered complete performance and Jessica will have to pay the contractor.
• B) Jessica can claim a breach of contract and refuse to pay for the construction of the house.
• C) This will be considered a substantial performance and Jessica would be entitled to monetary damages.
• D) Jessica has materially breached the contract by refusing to pay Bob's, and hence cannot sue Bob's for the carpeting.
• E) The court is likely to declare that Bob's has breached the contract, and will ask Jessica to pay half the cost decided as per contract.

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Definitions:

UCC

The Uniform Commercial Code, a comprehensive set of laws governing commercial transactions in the United States, including sales, leases, and negotiable instruments.

Check

A written, dated, and signed instrument that directs a bank to pay a specific sum of money to the bearer or a named party.

Holder in Due Course

A legal term describing a person who has acquired a negotiable instrument in good faith and has the right to collect on it, free from many defenses.

Due Diligence

The investigation or exercise of care that a reasonable business or person is expected to take before entering into an agreement or a financial transaction with another party.