AL Bar Practice Questions - Alabama Bar Examination Exam

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A homeowner contracts with a builder to construct a custom home for $300,000. After substantial performance, the builder uses the wrong brand of pipe (functionally identical) and the homeowner refuses to pay. Under common-law contract principles tested on the MBE, what is the homeowner most likely required to do?

Pay nothing because the builder breached the contract Pay the full contract price with no deduction Rescind the contract and recover all payments made Pay the contract price minus the diminution in value caused by the immaterial breach

Correct Answer:

Pay the contract price minus the diminution in value caused by the immaterial breach

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