Cengage Advantage Books: Business Law 9th Edition by Arnold Goldman ,William Sigismond

Exercise 6

Robert and Sandra Bell hired McCann to build a house for them at a contract price of $45,000. McCann then changed his mind and refused to build, claiming that he would make no profit. The Bells then advertised for bids from other contractors. The lowest bid was $54,500, which the Bells accepted. They then brought suit against McCann for the difference between the original contract price and the market price ($54,500 - $45,000), less the extras of $4,562 that were discussed but had not been included in the contract. Thus, the Bells were awarded $4,938 in damages by the trial court. McCann appealed, claiming that the trial court applied an improper measure of damages. Do you agree with McCann? (Bell v. McCann, 535 P.2d 233)