For example, when a contract specifies time is of the essence and one party to the contract fails to meet a contractual obligation in a timely fashion, the other party could sue for damages for a major breach. However, had the pipe colour been specified in the agreement as a condition, a breach of that condition would constitute a "major" breach. Therefore, no damages have been incurred and the homeowner would receive nothing. Since the color of a pipe does not affect its function, the difference in value is zero. In this instance, this is the difference in value between red pipe and blue pipe. The homeowner can only recover the amount of his or her actual damages. Although the contractor breached the literal terms of the contract, the homeowner cannot ask a court to order the contractor to replace the blue pipes with red pipes.
The contractor instead uses blue pipes that function just as well.
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Suppose a homeowner hires a contractor to install new plumbing and insists that the pipes, which will ultimately be hidden behind the walls, must be red. In a "minor" breach (a partial breach or immaterial breach or where there has been substantial performance), the non-breaching party cannot sue for specific performance, and can only sue for actual damages. Unsourced material may be challenged and removed. Please help improve this article by adding citations to reliable sources. This article needs additional citations for verification.
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