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49. If the contractor sues the homeowner for the balance of the contract price, will the contractor be likely to prevail?
A homeowner contracted in writing with a kitchen contractor to renovate her kitchen for $25,000, «subject to the homeowner's complete personal satisfaction.» The contractor replaced the cabinets, flooring, and countertops and then sought payment from the homeowner. The homeowner paid the contractor only $20,000, truthfully saying that she did not like the finish on the cabinets and was therefore not satisfied.
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B is incorrect. The contractor will not prevail because a condition to the homeowner's obligation to pay was not satisfied.
C is incorrect. As stated in the facts, the homeowner was truthful in her dissatisfaction with the finish of the cabinets. This would not amount to a breach of the covenant of good faith and fair dealing which would deny the contractor the benefit of the contract.
D is incorrect. As discussed above, there can be no breach of contract until a condition has been fulfilled. Because the condition of the homeowner's satisfaction had not been fulfilled, there is no breach of contract.