On May 1, George contractually agreed to purchase a painting from Laura for $50 000.On that date, George prepaid half of the purchase price and promised to pay the other half upon delivery.Laura promised to deliver the painting to George on June 1.In anticipation of receiving the painting, George spent $10 000 building a special display case in his home.On May 15, the artist who created the painting died and the value of the painting immediately increased to $75 000.Laura therefore refused to deliver the painting to George.George is entitled to receive

Question

Quizplus · Accepted Answer

George is entitled to the benefit of his bargain, which is the painting for $50,000. Therefore, his expectation damages are $50,000. The fact that the painting's value increased to $75,000 is not relevant as it is a subsequent event that occurred after the contract was formed. The special display case cost is not recoverable as it is a consequential loss and not a direct result of the breach.

On May 1, George Contractually Agreed to Purchase a Painting