Question

Remedies for Breach. Reefpoint Brewhouse in Racine, Wisconsin, contracted with Forman Awnings and Construction, LLC, for the fabrication and installation of an awning system over an outdoor seating area. After the system was complete, Reefpoint expressed concerns about the workmanship but did not give Forman a chance to make repairs. The brewhouse used the awning for two months and then had it removed so that siding on the building could be replaced. The parties disagreed about whether cracked and broken welds observed after the removal of the system were due to shoddy workmanship. Reefpoint paid only $400 on the contract price of $8,161. Can Reefpoint rescind the contract and obtain a return of its $400? Is Forman entitled to recover the difference between Reefpoint’s payment and the contract price? Discuss.

Answer 1

Though Reefpoint had concerns about the awning system, they still accepted it from Forman. Also Reefpoint did not give Forman a chance to make repairs in the awning and got it replaced because of some other construction issue.

Reefpoint had taken the delivery of the product, though having concerns with the quality. The product was installed and used for a particular period of time. Reefpoint clearly had the benefit of its bargain. The reason to remove the awning system owned to an external factor, not at all concerned with Forman. The law states that at the time of delivery, if the buyer is not satisfied with the quality of the product, the buyer can repudiate or can accept the product, seeking some reduction in its price. But once the buyer accepts and uses the product, remedy of rescission is not available.

So Reefpoint cannot rescind the contract and opt for the refund. Instead Forman is entitled to recover the difference after reducing the quality deteroriment price