First Principles of Business Law
Quiz: Remedies for breach of contract

Question 11

 

 

 

A agrees to erect a fence around a paddock owned by B.  The contract requires the fence to be 1.5 metres high, with steel posts every six feet and with four strands of wire.  There is to be a single gate in the south side of the paddock.  The price for the completed job is $5,000.  A erects the fence in accordance with the specifications except that he puts the gate in the east side of the paddock by mistake.  It would cost $300 to move the gate.  Assuming that there has been a breach of a condition in the contract, which one of the following statements is correct?

(a) In these circumstances, B may reject the fence and is not obliged to pay any part of the agreed price.  However A is entitled to remove the fence.

(b) In these circumstances, B can keep the fence and have the gate moved at his own cost but is not required to pay any part of the agreed price to A.

(c) In these circumstances the breach does not deprive B of the intended benefit of the contract and B must accept the fence and pay for it, less the cost of moving the gate.

 

 

 

 

 

 

 

 

 

 

  

 

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