A homeowner contracts with a landscaper to completely redesign their garden for $10,000. The contract specifies 'Grade A turf' for the lawn. The landscaper installs 'Grade B turf,' which is slightly inferior but still healthy and green, and costs $500 less than Grade A. The homeowner discovers the discrepancy after completion. What is the most likely basis for the homeowner's damages?
- ADifference in value between Grade A and Grade B turf, which is $500.
- BSpecific performance, requiring the landscaper to replace the turf.
- CCost of replacement of the turf, plus any consequential damages.
- DPunitive damages due to the landscaper's intentional breach.
Show answer & explanationAnswer & explanation
Correct answer: A. Difference in value between Grade A and Grade B turf, which is $500.
This scenario involves a minor breach where the performance is substantially complete but deviates slightly from the contract. When the cost to repair or replace the defective performance is disproportionately high compared to the decrease in value, courts often award damages based on the diminution in value. Here, replacing the entire lawn for a slight grade difference would be economic waste. The damages would be the difference in market value between the garden with Grade A turf and the garden with Grade B turf, which corresponds to the cost difference of the turf itself.
Why the other options are wrong
- B. Specific performance is typically reserved for unique goods or land, not for a breach involving a readily available commodity like turf where monetary damages are adequate.
- C. Cost of replacement might be awarded if the defect was substantial or replacement was not economic waste; here, it's a minor defect with disproportionate replacement cost.
- D. Punitive damages are generally not available for breach of contract unless there is an independent tort.
Damages for Minor Breach
When a contract is substantially performed but there's a minor deviation, remedies aim to compensate for the loss in value. If the cost of repair/replacement is disproportionately high (economic waste), diminution in value is awarded.
- Substantial performance allows recovery for the breaching party, less damages.
- Damages for minor breach often measured by diminution in value.
- Cost of repair/replacement awarded if reasonable and not economic waste.
Memory trick: When a promise breaks, the law fixes it with money or action.