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In: Operations Management

The Caplans contract with Faithful Construction, Inc. to build a house for them for $360,000. The...

The Caplans contract with Faithful Construction, Inc. to build a house for them for $360,000. The specifications state “all plumbing bowls and fixtures…to be Crane brand.” The Caplans leave on vacation and, during their absence, Faithful is unable to buy and install Crane plumbing fixtures. Instead, Faithful installs Kohler brand fixtures, an equivalent in the industry. On completion of the building contract, the Caplans inspect the work, find the substitution, and refuse to accept the house. They claim Faithful has breached the conditions set forth in the specifications.

- Is the Caplans’ claim valid

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Answer:

Yes,Caplans claim is valid because he has stated the specifications in the contract that the plumbing bowls and fixtures should be crane brand but faithful construction has not fixed crane brand but has fixed some other brand .So faithful has breached the contract conditions set forth in the specifications.If they are going to fix some other brand other than crane then they should have asked permission from Caplan about the fixtures before fixing it.Even if he is on vacation they should have waited to fix or else should have contacted him and informed him about the other brand fixtures.But faithful construction didnot do that and they decided to fix some other brand by themselves thus breaching the contract condition.So Caplan's claim is valid and the construction company should either convince him by saying that Kohler brand is also euqivalent in the industry.If he is not satisfied they have to pay some sttlement  for breaching of contract condition or replace the fixtures again with the Crane brand in their own cost.


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