Jacob & Youngs v. Kent
Court of Appeals of New York
129 N.E. 889 (1921)
Jacob & Youngs (plaintiff) built a $77,000 country residence for Kent (defendant) under a contract specifying pipe manufactured in Reading, Pennsylvania. After completion, Kent discovered some pipe came from elsewhere, though it was of equivalent quality, supplied due to an innocent subcontractor error. Kent demanded replacement, which would have required substantial additional work; Jacob & Youngs left the pipe as installed and sought its final payment. Kent refused to certify payment, and at trial Jacob & Youngs was barred from showing the substitute pipe's equivalent quality; the jury found for Kent, but the appellate court reversed and ordered a new trial.
Whether a party that substantially performs its contractual obligations must bear the full replacement cost needed to achieve strict compliance.