Clay Pots pays Dora $25,000 to propose an online marketing campaign. Two days later, Dora tells Clay Pots that she has accepted a job with its competitor Earthenware Inc. and cannot plan the campaign. As compensatory damages, Clay Pots can recover

Question

Quizplus · Accepted Answer

As Dora has breached the contract by not fulfilling her obligation, Clay Pots is entitled to recover compensatory damages, which are the actual losses suffered as a result of the breach. In this case, Clay Pots can recover the amount paid to Dora as she failed to deliver the promised service. Therefore, the correct answer is option B, which is $25,000. Options A, C, and D are incorrect as they either overstate or understate the damages.

Clay Pots Pays Dora $25,000 to Propose an Online Marketing