Question 2

Building contractor (BC) and owner (O) made a contract to construct a home.The plans and specifications in the contract clearly called for the use of General Plumbing piping.The contract price was $1,100,000.Upon inspecting the completed work and before making the final $400,000 payment and accepting the building, O discovered that BC had used Republic piping throughout the house.O explained to BC that his family had made its money by investing in General Plumbing, and he, therefore, would not make the final payment until the breach of contract was remedied.BC argued that Republic pipes were of the same industrial grade and quality as the General Plumbing pipers, but, O had substantial evidence that the pipes were not of the same industrial grade and quality.Moreover, BC estimated that it would cost nearly $300,000 to replace all of the pipes because of the destruction of walls and fixtures necessary to accomplish such a task.BC sues O for $400,000 for breach of contract, claiming he had substantially performed the contract, and O counterclaims for $300,000 seeking an offset for the cost of remedying the breach.Discuss if BC will recover $400,000 and if O will recover $300,000 and explain.