The Smiths hire a contractor to build a home for them.The total cost of the contract is for $110,000.Some of the building materials are delivered,and the contractor refuses to build the house.An alternate contractor agrees to build the house using the same materials for $125,000.Are the Smiths entitled to damages? If so,how much?

Question

Quizplus · Accepted Answer

The Smiths are entitled to contract damages, which are calculated as the difference between the contract price and the cost of completion using another contractor. In this case, the cost of completion with the alternate contractor is $125,000, and the contract price was $110,000. Therefore, the Smiths are entitled to damages in the amount of $15,000. Option A is incorrect because the contract was partially performed, and the Smiths still incurred damages. Options C and D are incorrect because the damages are not equal to the contract price or the cost of completion, but rather the difference between the two.

The Smiths Hire a Contractor to Build a Home for Them.The