On March 1, Green and Brown orally agreed that Brown would erect a boathouse on Green's lot and would dig a channel from the boathouse across Clark's lot to a lake. Clark had already orally agreed with Green to permit the digging of the channel across Clark's lot. Brown agreed to begin work on the boathouse on March 15, and to complete all the work before June 1. The total price of $10,000 was to be paid by Green in three installments: $2,500 on March 15, $2,500 when the boathouse was completed, and $5,000 when Brown finished the digging of the channel."Assume that Green paid the $2,500 on March 15 and that Brown completed the boathouse according to specifications, but that Green then refused to pay the second installment and repudiated the contract. Assume further that the absence of a writing is not raised as a defense. Which of the following is/are correct? I. Brown has a cause of action against Green and his damages will be $2,500. II. Brown can refuse to dig the channel and will not be liable for breach of contract.
I only II only Both I and II Neither I nor I