The Warrens hired Denison, a building contractor, to build a house on their property for $73,400. Denison's construction deviated somewhat from the specifications for the project. These deviations were presumably unintentional, and the cost of repairing them was $1,941.50. The finished house had a market value somewhat higher than the market value would have been without the deviations. The Warrens refused to pay the $48,400 balance due under the contract, alleging that Denison had used poor workmanship in building the house and they were under no obligation to perform further duties under the contract.

Answer the following questions:

1. Do the Warrens have the right to withhold all further payment?

2. What standard is used to measure the performance of the contract for the construction of the home?

3. What are the consequences of Denison's Breach of contract?

4. What are the appropriate remedies for Denison's breach of contract?

5. Are the Warrens under an ethical duty to pay Denison?