Structo contracted with Bailey to construct for $500,000 a warehouse and an access driveway at highway level. Shortly after commencing work on the driveway, which required for the specified level some excavation and removal of surface material, Structo unexpectedly encountered a large mass of solid rock. For this question only, assume the following facts. Upon encountering the rock formation, Structo, instead of incurring additional costs to remove it, built the access driveway over the rock with a steep grade down to the highway. Bailey, who was out of town for several days, was unaware of this nonconformity until the driveway had been finished. As built, it is too steep to be used safely by trucks or cars, particularly in the wet or icy weather frequently occurring in the area. It would cost $30,000 to tear out and rebuild the driveway at highway level. As built, the warehouse, including the driveway, has a fair market value of $550,000. Bailey has paid $470,000 to Structo, but refuses to pay more because of the nonconforming driveway, which Structo has refused to tear out and rebuild. If Structo sues Bailey for monetary relief, what is the maximum amount Structo is entitled to recover? 
$30,000, because the fair market value of the warehouse and driveway "as is" exceeds the contract price by $50,000 (more than the cost of correcting the driveway).  $30,000, because Structo substantially performed and the cost of correcting the driveway would involve economic waste.  $30,000, minus whatever amount Structo saved by not building the driveway at the specified level.  Nothing, because Bailey is entitled to damages for the cost of correcting the driveway. 
Question: Structo contracted with Bailey to construct for $500,000 a warehouse and an access driveway at highway level. Shortly after commencing work on the driveway, which required for the specified level some excavation and removal of surface material, Structo unexpectedly encountered a large mass of solid rock. For this question only, assume the following facts. Upon encountering the rock formation, Structo, instead of incurring additional costs to remove it, built the access driveway over the rock with a steep grade down to the highway. Bailey, who was out of town for several days, was unaware of this nonconformity until the driveway had been finished. As built, it is too steep to be used safely by trucks or cars, particularly in the wet or icy weather frequently occurring in the area. It would cost $30,000 to tear out and rebuild the driveway at highway level. As built, the warehouse, including the driveway, has a fair market value of $550,000. Bailey has paid $470,000 to Structo, but refuses to pay more because of the nonconforming driveway, which Structo has refused to tear out and rebuild. If Structo sues Bailey for monetary relief, what is the maximum amount Structo is entitled to recover? 
A. $30,000, because the fair market value of the warehouse and driveway "as is" exceeds the contract price by $50,000 (more than the cost of correcting the driveway). 
B. $30,000, because Structo substantially performed and the cost of correcting the driveway would involve economic waste. 
C. $30,000, minus whatever amount Structo saved by not building the driveway at the specified level. 
D. Nothing, because Bailey is entitled to damages for the cost of correcting the driveway. 
Answer: