Remington Construction created a contract with Royal Condominiums.Royal was to pay a total of $5 000 000; Remington was to build a fitness centre.Remington began its performance by pouring foundations at a cost of $250 000.Royal then breached the contract and refused to allow Remington back on the property.Which of the following is most likely to be TRUE?

Question

Quizplus · Accepted Answer

Remington is entitled to receive reliance damages, which is the amount necessary to put the plaintiff in the position he or she would have been in had the contract not existed. In this case, Remington can recover the cost of the foundations. Since Royal breached the contract before Remington had a chance to earn any profits, Remington cannot recover account for profits. Nominal damages are awarded when there has been a breach, but the plaintiff has not suffered any actual loss or damage. Remington has suffered an actual loss, so it is not limited to nominal damages. The expectation damages are calculated based on the amount of profit the plaintiff would have earned if the contract had been performed, however, since the contract was breached before Remington had a chance to earn any profits, Remington's expectation damages will be limited to the amount necessary to put it back in the position it would have been in had the contract not existed, which is the cost of the foundations. Finally, since the cost of the foundations is a direct result of the breach, it is not too remote to be recovered.

Remington Construction Created a Contract with Royal Condominiums