Question
Air Environment installs central air conditioning at Bob's office premises, for a contract price of $5,600. The air conditioning system is installed, but there are
Air Environment installs central air conditioning at Bob's office premises, for a contract price of $5,600. The air conditioning system is installed, but there are defects in workmanship that will cost $1,740 to remedy.What payment is Air Environment entitled to?
Select one:
a.
The full contract price of $5,600 minus the cost to rectify the defects, as the defects would be considered to be minor relative to the contract price, indicating that the contract has been substantially performed.
b.
Nothing, as they did not substantially perform the contract.
c.
The full contract price of $5,600, as this is what was agreed between the parties.
d.
Nothing, as they have acted contrary to industry standards.
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