1. A construction contract called for oak paneling in certain rooms. Because oak was unavailable, a subcontractor installed birch panel. The prime did not notice this deviation. Oak and birch paneling cost the same. When the owner saw the birch paneling, she told the prime contractor she liked it. The next day the owner told the prime contractor she wanted oak paneling installed. Is the contractor obligated to replace the paneling? If she does not, what, if anything, can the owner recover? 2. On February 1, C was entitled to a progress payment of $10,000 based on a certificate issued by the architect. The owner informed the contractor on February 2 that payment would be delayed for a week because the proceeds of the construction loan had run out and the owner was in the process of getting a new loan. What are the contractor's rights at this point? What additional facts would be helpful in resolving this question?