Substantial Performance in Construction Contracts


Added on  2019-09-13

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Name___________________MANDATORY LEGAL RESEARCH ASSIGNMENTCONTRACT LAW – IN CONSTRUCTION CONTRACTS, WHAT CONSTITUTES SUBSTANTIAL PERFORMANCE?Directions: Answer all questions below. Perform whatever legal research is necessaryto find the answer. Follow all instructions. Type or print neatly. This assignment maybe done individually. Successfully completing this assignment will result in the additionof TWO POINTS to your overall numerical average. Answers must be consistent withthe case that you find; no credit will be given for answers that are inconsistent with thecase. Follow all directions carefully.Due Date: DECEMBER 4, 2016, IN CLASS. Hardcopies Only – No E-mails. Allpapers for this assignment are to be stapled together as one document. You mustobtain your case using Westlaw.BACKGROUNDTed and Alice contract with Cheetum & Chancer Construction Corp. to have C&C builda house for them in Riverhead, New York. The house is to be a luxury prefabricatedhome and the total cost is to be $800,000. According to C&C, the house has beencompleted in timely fashion and the last draw of $200,000 is now due. Before paying the last draw, Ted and Alice move in and discover a number of defects anddeviations from the original architectural drawings. There are cracks in the foundationand the basement shows signs of moisture seeping in through the walls. A sliding glassdoor leading to a sun room is sticking and is difficult to open. The sun room was1
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supposed to have a poured concrete foundation but instead it sits on pylons, a cheapermethod of construction. One of the two fireplaces belches smoke into the room. Thecloset in one of the bedrooms was mistakenly installed under the attic staircase so it hasan angled ceiling that makes it useless for hanging clothes. The kitchen cabinets aremade of particle board instead of the solid cherry called for in the plans. The bedroomfloors are not level and the upstairs bathroom floor is linoleum instead of the marble thatwas called for in the plans. The plumbing works, but the fixtures are cheap substitutesfor the ones called for in the specs, and they have a cheap feel to them. In addition, alower grade of pipe was used, as opposed to the grade that was specified in the plans.The numerous defects and omissions described above appear to be the result ofincompetence. C&C apparently tried in good faith to complete the contract, and thehouse is livable – C&C did obtain a Certificate of Occupancy from the Town. It isestimated that it will cost $100,000 to bring the house into compliance with the originalarchitectural drawings. Ted and Alice are irate and refuse to pay C&C the final draw of$200,000. QUESTIONS TO BE ANSWERED1.Under New York law, can C&C be a plaintiff and successfully sue Ted and Alicefor breach of contract based on the doctrine of substantial performance, eventhough C&C committed the errors and omissions described above? Find, cite andattach(!!!) a case that answers this question. The case should be factually similarto the case described above and should be binding precedent in Riverhead, NewYork. Highlight(!!!) the facts in the case that you think are dispositive, andhighlight(!!!) the rule. Also, in the space below, QUOTE the rule on this issue._____Yes, C&C probably can successfully sue for breach of contract under the doctrine of substantial performance and if successful it will win2
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