Remington Construction enters into a contract with Royal Condominiums to build a new apartment building.Before receiving payment,Remington puts $100 000 into pouring the foundation.Royal breaches the contract by missing a payment.Which of the following is true?

Question

Quizplus · Accepted Answer

Remington can receive reliance damages, which compensate for expenses incurred in reliance on the contract. In this case, Remington spent $100,000 on pouring the foundation, which was a necessary expense for fulfilling the contract. While Remington may not be able to recover the full amount of the contract price, they can recover damages for their reliance on the contract.

Remington Construction Enters into a Contract with Royal Condominiums to Build