Daryl agreed to build a new house for Riley at a cost of $325,000. Riley is very particular when it comes to what she wants. Darylconstructed the house to Riley's specifications with one exception: the faucets and flooring in the upstairs bathroom were not exactlywhat Riley specified. This was a mistake on Daryl's part, but he did not intentionally fail to follow the specifications.When Riley saw the bathroom, she was extremely angry and began yelling and Daryl. She told him that she would not pay Darylanything for the house. It would take $500 to put in the correct faucets and flooring Riley originally requested.Daryl responded that he was willing to pay $500 to put Riley in the position she would have been in had the correct faucets andflooring been used, but that is all he is willing to pay.Regarding the appropriate amount of damages, if any, which of the following statements is true regarding the effect Daryl's failure tomeet his obligations under the building contract?O Riley is released from paying for the house because of the anticipatory breach.O Any damages awarded would be in the range of $500, the amount it would take to fix the breach.O Riley will not have to pay for the house because Daryl failed to perform as required.O Even though Daryl substantially performed, Riley will not have to pay for the house because Daryl materially breached the contract.

In this scenario, Daryl agreed to construct a house for Riley at a cost of $325,000, adhering to her…

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