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As a breeder, I can say that it sounds like this particular breeder has a typical contract that will offer replacement on a life threatening congenital problem. What the contract doesn’t address is any serious defects or flaws that are non-life threatening. I agree that the right thing for the breeder to do was to replace the puppy and give you what you paid for. However, from a legal stance, I think that you signed a contract that offered you no protection for the defective puppy that you received. I can say that although my contracts are possibly very similar to the contract of this breeder, from a moral and ethical standpoint, I would not want to have a customer that paid top dollar for a severly flawed puppy. I would make it right and replace the puppy… but that is just me.