California First-Year Law Students' Exam (Baby Bar) — MCContractsMedium
A homeowner contracts with a landscaper to completely redesign their garden for $10,000. The contract specifies that the landscaper must use 'Premium Grade A' topsoil. However, due to a supplier error, the landscaper inadvertently uses 'Standard Grade B' topsoil, which is functionally equivalent and causes no aesthetic or growth issues, but is technically not 'Premium Grade A'. The homeowner discovers this after completion and refuses to pay the full $10,000, arguing a breach of contract. What type of breach has occurred, and what are the homeowner's likely remedies?
- AA minor breach, entitling the homeowner to damages representing the difference in value between the promised and delivered topsoil.
- BA material breach, but the homeowner must still pay the contract price and sue for specific performance of the correct topsoil.
- CNo breach has occurred, as the 'Standard Grade B' topsoil is functionally equivalent, and the homeowner must pay the full contract price.
- DA material breach, entitling the homeowner to terminate the contract and recover full expectation damages.
Show answer & explanationAnswer & explanation
Correct answer: A. A minor breach, entitling the homeowner to damages representing the difference in value between the promised and delivered topsoil.
This is a minor breach (or partial breach) because the essential purpose of the contract (a redesigned garden) has been substantially performed, and the deviation (topsoil grade) is not material. The non-breaching party (homeowner) can only recover damages for the difference in value, not terminate the contract.
Why the other options are wrong
- B. Specific performance is not typically available for a breach involving a fungible item like topsoil, and the homeowner is not required to pay the full price without recourse.
- C. A breach has occurred because the contract specified 'Premium Grade A', and 'Standard Grade B' was delivered, even if functionally similar.
- D. A material breach would allow termination, but this breach is minor as the garden's essential purpose is met.
Minor Breach of Contract
A breach of contract that is not substantial enough to defeat the essential purpose of the contract. The non-breaching party cannot terminate the contract but can sue for damages caused by the breach.
- Also known as a partial breach.
- Does not excuse the non-breaching party's performance.
- Remedy is typically compensatory damages for the specific defect.
Memory trick: How bad was the break? Big or little?