A homeowner contracts with a landscaper to completely redesign their garden for $10,000. The contract specifies that the landscaper will use 'Grade A' topsoil. During the project, the landscaper, without informing the homeowner, uses 'Grade B' topsoil, which is slightly inferior but still suitable for the garden and does not significantly affect its long-term health or appearance. The cost difference between 'Grade A' and 'Grade B' topsoil is $100. The homeowner discovers this after the project is completed and refuses to pay the remaining $2,000 balance. What type of breach has occurred, and what damages can the homeowner likely recover?
- AA material breach; the homeowner can refuse to pay the balance and seek additional damages.
- BA minor breach; the homeowner can refuse to pay the remaining balance as a set-off against damages.
- CA minor breach; the homeowner can recover $100 in damages, but must pay the remaining balance.
- DA material breach; the homeowner can demand the entire garden be re-done with 'Grade A' topsoil.
Show answer & explanationAnswer & explanation
Correct answer: C. A minor breach; the homeowner can recover $100 in damages, but must pay the remaining balance.
This is a minor breach (or partial breach) because the deviation from the contract terms is not substantial enough to defeat the essential purpose of the contract. The homeowner received a functional garden, just with slightly inferior soil. In such cases, the non-breaching party is entitled to damages reflecting the loss suffered due to the deviation, which is the cost difference of the soil, but must still perform their part of the contract (pay the balance).
Why the other options are wrong
- A. The breach is not material because the garden is still suitable and its purpose is not defeated.
- B. The homeowner can set off the damages against the balance, but they cannot refuse to pay the entire balance for a minor breach.
- D. Redoing the entire garden would likely constitute economic waste and is an excessive remedy for a minor deviation.
Minor Breach of Contract
A non-material breach of contract where the breaching party substantially performs their obligations, but a minor deviation or defect exists that does not defeat the essential purpose of the contract.
- Does not excuse the non-breaching party from their performance.
- Non-breaching party can sue for damages caused by the minor defect.
- Damages are typically the cost to repair the defect or diminish in value.
Memory trick: Minor Breach Means Pay Up, But Get a Small Refund.