Beth entered into an agreement to remodel Horace's house for $450,000. Beth developed her plans and had them approved by Horace. Beth then began ordering supplies and hiring sub-contractors to perform the work. Beth worked on the alterations during a six-month period while Horace was located in Iraq for work. She specifically agreed to "complete the project on or before Nov. 20, 2013 in anticipation of your return from Iraq."

Horace returned on November 23 and went to see his house. While he was there, he noted that Beth had not completed all of the work in a satisfactory manner.

a) Beth had not installed a new air conditioning unit in the house. The agreement had specified a $30,000 high-efficiency system.

b) Beth's painters had painted the rooms but Horace looked at the results and simply said, "they are not good enough for my tastes. I am a person who takes great pride in the appearance of my home." The day before, two city building inspectors had toured the home and approved all of the work. They had specifically asked Beth who she used for the "excellent paintwork."

Because of the two items, Horace declared Beth was in breach of contract. He refused to pay any of the $420,000 amounts because Beth had not performed the work. Beth offered to install the missing air conditioning system but claimed the painters did a "very professional job."