A contractor agreed to build a plant for a manufacturer for…
A contractor agreed to build a plant for a manufacturer for $5 million, with $1 million paid in advance and the balance to be paid upon completion of the project. The contract required the contractor to use lighting fixtures from a specific company. Inadvertently, the contractor installed fixtures from a different company. The installed fixtures are generally considered to be of a slightly better quality than the fixtures specified in the contract. The mistake was not discovered until the manufacturer did a final inspection of the building. As built, the plant is worth $10,000 more than it would have been worth had the specified fixtures been used. It would cost the contractor $100,000 to replace the fixtures with the ones specified in the contract. Because of a downturn in the economy, the manufacturer no longer wants to move into the new plant and refuses to pay the contractor because of the breach regarding the light fixtures. If the contractor sues the manufacturer for breach of contract, which of the following doctrines will be most important to a court’s decision?
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