The Amosi Corporation contracts to have the Whetsel Builders construct a manufacturing unit for $800,000.It would take Whetsel $500,000 to build the unit.Amosi withdraws from the contract before the construction begins.Whetsel can recover ________ from Amos as compensatory damages for its lost profits.
A) $500,000
B) $300,000
C) $800,000
D) $1,100,000

Question

Quizplus · Accepted Answer

Whetsel's lost profit is the difference between the contract price of $800,000 and the cost to build of $500,000, which is $300,000. Therefore, Whetsel can recover $300,000 as compensatory damages from Amosi for breach of contract. Choices A, C, and D are incorrect because they either represent the wrong amount or include additional amounts that Whetsel is not entitled to recover.

The Amosi Corporation Contracts to Have the Whetsel Builders Construct