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18-1. Conditions of Performance The Caplans contract with Faithful Construction, Inc., to build a house for...

18-1. Conditions of Performance

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, discover the substitution, and refuse to accept the house, claiming Faithful has breached the conditions set forth in the specifications. Discuss fully the Caplans’ claim.(See Conditions.)

Answer this using the IRAC writing Format

I-Describe the issue at hand (the question being asked)

R-Describe the rule that is applicable in this situation

A-Apply the rule to the facts of yor situation

C-Draw a conclusion

Solutions

Expert Solution

Issue:

​​The issue on hand in the case of Caplans Vs Faithful construction is fulfillment of conditions set out in the contract and whether a contract can be enforceable without fulfillment of conditions cited in the contract.

Rule:

​​The rule is that all express conditions in a contract must be fulfilled. If the conditions are implied, then only substantial performace needs to be proved to make the contract enforceable.

Application:

If the specifications were considered to be expressed conditions to the contract, Faithful Constructions must perform them in full. The Caplans are not obligated to pay unless Faithful does so. If however, the conditions are implied, then Faithful will only need to prove substantial performance. However, he shall be l​iable for any damages which have occured due to him not performing the contract fully.In this case, the condition to install Crane fixtures is implied.

Conclusion:

​​It is stated that the Kohler brand is equivalent to the Crane brand, thus substantial performance condition is met and the Caplans will be obligated to pay.If they have suffered monetary damages, they can deduct the amount after submission of proof.

ekkarill92 answered 1 year ago
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