Woody entered into a contract with Jezebel. She promised to pay $10 000 and he promised to build a sun deck in her back yard. The contract contained specific terms regarding the quality of the materials that Woody would use. Woody built a sun deck, but many of the materials that he used fell below the standard required by the contract. As a result of that breach, the deck is worth $1000 less than Jezebel expected. It will cost $9000 to replace the defective materials with materials that satisfy the terms of the contract. Which of the following statements is TRUE?
A) A court will certainly award cost of cure damages if Woody deliberately used materials that did not satisfy the terms of the contract.
B) A court will probably refuse to award cost of cure damages because the difference between the loss of value and the expense of repairing the defect is very large.
C) Cost of cure damages are classified as a form of punitive damages because they often require the defendant to pay for more than the plaintiff's actual loss of value.
D) If Jezebel is awarded cost of cure damages, she must use that money to cure the defect.
E) If Woody deliberated breached the contract by using inferior materials, Jezebel will receive total damages worth $18 000.
Correct Answer:
Verified
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