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On June 1, Owner entered into a contract with Concrete Co. (CC) for construction of a cement foundation and basement for a house that Owner

On June 1, Owner entered into a contract with Concrete Co. (CC) for construction of a cement foundation and basement for a house that Owner was having built. The rest of the house was to be built by another construction company. The contract specifications required the floor to be four inches in thickness and that all work was to be completed in a workmanlike manner according to standard practices. The contract required that the concrete work be done by July 1. CC knew that Owner wanted the construction on the house to begin on July 1 so that the house would be ready to occupy by September 1. The total cost for the foundation and basement was to be $6,000, which was payable in two installments$2,000 on July 1 and the remaining $4,000 on September 1. By July 1, CC completed the foundation and basement. The cement was dry and ready for the other builders to start constructing the house. Owner made the first payment of $2,000 to CC. The other contractors started building the house on top of the foundation and basement. By August 1 (about the time the house was half built), it became apparent that the basement was laid down in a negligent manner. CC had hired unskilled laborers to do the work. Cracks appeared throughout the basement floor. Structurally, the house would not collapse because of the cracks in the floor; however, it is possible that there might be groundwater seepage through the cracks. If repairs are not done, then the house is worth only $500 less than if the CC had performed according to the terms of the contract. Owner asked CC to redo the work, but CC refused to do so. Owner sought an estimate from a reputable company on whether the foundation could be fixed even though the house was half built. The reputable company estimated that it would cost $9,000 to (1) chop out the defective floor with a jackhammer, (2) remove the old cement through the basement windows, and (3) pour a new floor through the basement windows. Owner hired the reputable company to complete work and paid the reputable company $9,000. Although Owner made the July 1 payment to CC of $2,000, Owner did not pay CC the second payment of $4,000. CC sues Owner for the remainder of the contract pricei.e., $4,000. Owner counter-claims, seeking the repair cost of $9,000. At trial, a jury finds that CC totally breached the contract. What remedy should be given to Ownerthe cost to repair or diminution in value? Should CC recover for the $4,000?

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