Sara contracts to work exclusively for Thermal Company during July for $5,000. On June 30, Thermal cancels the contract. Sara finds a similar job for the month of July but earns only $3,000. Sara files a suit against Thermal. As compensatory damages, Sara can recover
A) $3,000.
B) $2,000.
C) $1,000.
D) $0.

Question

Sara contracts to work exclusively for Thermal Company during July for $5,000. On June 30, Thermal cancels the contract. Sara finds a similar job for the month of July but earns only $3,000. Sara files a suit against Thermal. As compensatory damages, Sara can recover
A) ​$3,000.
B) ​$2,000.
C) ​$1,000.
D) ​$0.

Quizplus · Accepted Answer

Sara can recover the difference between what she would have earned under the contract ($5,000) and what she actually earned ($3,000), which is $2,000. Therefore, the answer is B.

Sara Contracts to Work Exclusively for Thermal Company During July