A painter, who has been in the painting and contracting business for ten years, contracts to paint a farmer’s barn. The farmer’s barn is a standard red barn with a loft. The contract contains the following clause:
“It is agreed that the work will be completed to the full and complete satisfaction of the farmer.”
Which of the following statements is correct?
A. The farmer can avoid having to pay simply by declaring that he is dissatisfied with the work.
B. The farmer will have to pay if a reasonable person would be satisfied with the work.
C. Even if a reasonable person would be satisfied with the work, the farmer will not have to pay if he is genuinely dissatisfied with the work.
D. The clause has no effect on the liability of the farmer, because it fails to set any enforceable standard of what constitutes satisfaction.
{ 6 comments… read them below or add one }
Answer B is correct. The quoted language is an express condition precedent to the farmer’s obligation to pay for the work. The issue is the construction of the words, “full and complete satisfaction.” There are three possibilities. Answer A represents the extreme position where a person can reject the job even if he does not honestly believe that it is bad. This position is not upheld by courts under any circumstances.
Answer C is the good-faith standard which applies when the satisfaction relates to taste or artistic judgment. On the other hand, if no issue of taste is involved, then the test is whether the work was done in a manner that would be satisfactory to a reasonable person. In this case, painting the barn does not involve any artistic judgment, and therefore the test set forth in Answer B is applicable.
Answer A is incorrect. The quoted language is an express condition precedent to the farmer’s obligation to pay for the work. The issue is the construction of the words, “full and complete satisfaction.” There are three possibilities. This answer choice takes the approach that is most favorable to the farmer. Under it, if the farmer says he is dissatisfied (even if in fact he is satisfied and is acting in bad faith), he will prevail. Courts will not go this far because that makes the party’s obligation to perform nearly illusory. A party will not be allowed to take advantage of a condition in bad faith.
Answer D is incorrect. The quoted language is an express condition precedent to the farmer’s obligation to pay for the work. The issue is the construction of the words, “full and complete satisfaction.” The law recognizes the enforceability of such words, and sets forth differing standards depending on the contractual duty. If the issue is one of artistic judgment or taste, the person holding the approval need only act in good faith. If, as in this case, the matter is more mundane, the condition is met if the work is satisfactory to a reasonable person.
C.
C is the correct answer
answer C. I believe it is a Satisfaction conditions – payment will be if you are satisfied. Under majority rule, there is an obligation of good faith. Only not to pay if there is good faith that you are not truly satisfied. if the farmer under good faith is truly dissatisfied he does not have to pay.
C because of the clause: subjective appreciation
C.