237. Acceptance of defective or incomplete performance by contractor or employer.

The employer waives defective work, and the contractor waives late or incomplete payment, where the ingredients of an estoppel, accord and satisfaction, or new agreement are present, and the party in breach of its original obligations can rely on the principles previously mentioned1.

Generally neither the employer nor his architect owes a duty to the contractor to condemn defective work promptly2 and acceptance will not be implied from the fact that the employer had knowledge of the defects at the time the work was done3. The employer does not accept defective work merely by moving into occupation and making use