Sabo contracts to work exclusively for Thermal Company during July for $5,000. On June 30, Thermal cancels the contract. Sabo finds a similar job for the month of July but earns only $3,000. Sabo files a suit against Thermal. As compensatory damages, Sabo can recover
A) $5,000.
B) $3,000.
C) $2,000.
D) $0.

Question

Quizplus · Accepted Answer

Sabo can recover the difference between what he would have earned under the contract with Thermal and what he actually earned after the contract was cancelled. Therefore, he can recover $2,000 ($5,000 - $3,000).

Sabo Contracts to Work Exclusively for Thermal Company During July