1. Jessica hires ChromaLite Builders Corp. to construct a house. The contract specifies that grade A+ carpeting is to be installed on the entire second floor. ChromaLite Builders accidentally installs grade A carpeting instead. Few people, except for carpeting experts, can tell the difference. Jessica, however, refuses to pay for the construction citing that ChromaLite Builders has breached the contract. Which of the following statements is true in this scenario?

The courts are likely to consider ChromaLite Builders’s performance as a substantial performance, and Jessica will have to pay something but not the full amount; i.e. she is entitled to monetary damages

Jessica has materially breached the contract by refusing to pay ChromaLite Builders; hence, she cannot sue ChromaLite Builders for the use of low-grade carpeting.

Jessica can claim a breach of contract and refuse to pay ChromaLite Builders for the construction of the house.

The courts are likely to declare that ChromaLite Builders has materially breached the contract and will ask Jessica to pay exactly half the cost originally mentioned in the contract.

The courts are likely to consider ChromaLite Builders’s performance as complete performance, and Jessica will have to pay the full amount to ChromaLite Builders.

2. Daniel’s failure to deliver ice-cream makers and waffle makers on time resulted in a two-week delay in the opening of Sheena’s new ice-cream parlor. Sheena incurred a heavy loss since she had to pay the rent for those two weeks as well as salaries to the personnel she had hired. In her contract for the delivery, she specified that time was of the essence and that the delivery of the ice-cream and waffle makers was critical to the business. In this case, which of the following remedies is a court most likely to award Sheena?

Nominal damages

Consequential damages.

Differential damages.

Liquidated damages.

Specific performance.