Monday, August 8, 2011

Can you sue for breach of contract because a similar appliance was installed instead of the one in contract?

Martin Mogul, the CEO of Colossus Studios, entered into a contract with Bozo Construction Co. providing that Bozo would build a guest house on part of a large property that Mogul owned in Bel-Air. The contract provided that Mogul would pay $30,000 to Bozo before construction began. An additional payment of $30,000 would be paid when the project was half-completed. A final payment of $40,000 was required to be paid 2 weeks after the construction project was completed. Bozo was required to build the house in accordance with plans provided by Mogul. Mogul made the down payment and Bozo began construction. When the project was half-completed Mogul paid another $30,000 to Bozo. The plans required Bozo to install in the guesthouse kitchen a specified model of dishwasher manufactured by Maytag. In fact Bozo installed a similar model of dishwasher manufactured by General Electric. The contract required that all of the interior walls be painted with specified shades of paint manufactured by Sherwin-Williams Paint Co.; Bozo used instead similar shades of paint manufactured by Vista Paint Co. Bozo finished the construction of the guest house. Mogul, claiming that the terms of the contract had not been complied with, refused to make the final payment of $40,000 to Bozo. Is Mogul obligated to make this final payment to Bozo? Explain.

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