Milt built a barn for the Lowreys, but unintentionally deviated from the agreed specifications. The contract price for Milt's work was $10,500. The barn is usable, but the damages for his deviation were $700. Identify the type of breach the courts would probably deem Milt's departure from the contract to be, and discuss the result of this type of breach.

The courts would probably hold that the contract was substantially performed, and therefore the Lowreys would only need to pay Milt $9,800 for his work. Although performance was not perfect, it did not defeat the purpose of the contract. If considered a material breach, the Lowreys would not have to pay for the barn, but this would be an unjust forfeiture for Milt. The deviation was not intentional and was probably not quantitatively serious enough to be considered a material breach. The doctrine of substantial performance is important in the construction industry.