Farquart had made a legally binding promise to furnish his son Junior and the latter's fiancÃ©e a house on their wedding day, planned for June 10, 1972. Pursuant to that promise, Farquart telephoned his old contractor-friend Sawtooth on May 1, 1971, and made the following oral agreement each making full and accurate written notes thereof: Sawtooth was to cut 30 trees into fireplace logs from a specified portion of a certain oneacre plot owned by Farquart, and Farquart was to pay therefor $20 per tree. Sawtooth agreed further to build a house on the plot conforming to the specifications of Plan OP5 published by Builders, Inc., for a construction price of $18,000. Farquart agreed to make payments of $2,000 on the first of every month for nine months beginning August 1, 1971, upon monthly presentation of a certificate by Builders, Inc., that the specifications of Plan OP5 were being met. Sawtooth delivered the cut logs to Farquart in July 1971, when he also began building the house. Farquart made three $2,000 payments for the work done in July, August, and September 1971, without requiring a certificate. Sawtooth worked through October, but no work was done from November 1, 1971, to the end of February 1972, because of bad weather, and Farquart made no payments during that period. Sawtooth did not object. On March 1, 1972, Sawtooth demanded payment of $2,000; but Farquart refused on the grounds that no construction work had been done for four months and Builders had issued no certificate. Sawtooth thereupon abandoned work and repudiated the agreement. "What was the probable legal effect of the following? I. Sawtooth's failure to object to Farquart's making no payments on November 1, December 1, January 1, and February 1. II. Farquart's making payments in August through October without requiring a certificate from Builders.
Estoppel-type waiver as to both I and II. Waiver of delay in payment as to I and revocable waiver as to II. Mutual rescission of the contract by I combined with II. Discharge of Farquart's duty to make the four payments as to I and estoppel-type waiver as to II