Myrta entered into a contract with "Big Builder on December 1, 2018 to remodel the interior of her Coffee Shop. The Contract required Big Builder to complete the project ata cost of $10,000 on or before January 1, 2019 (so she could open her Coffee Shop that day). Big Builder barely got started on the project by January 1, so Myrta terminated the Contract without paying Big Builder anything. Myrta then found a new Contractor, named "Better Builder who agreed to complete the same project by March 1, 2019 but at a cost of $11,500. Better Builder completed the project on March 1, 2019 and Myrta paid them $11,500. Happy the project is finally complete, Myrta still feels "ripped off by Big Builder and wants to sue them to recover her damages for breach of contract. Not only did Myrta have to pay $11,500 to Better Builder, but (i) she also had to pay a cleaning service $200 to clean up the construction mess Big Builder had left behind and (ii) she also lost an estimated $500 in profits she would have earned if Big Builder had completed their work (and she had been able to open by January 1.). Assuming she could prove both Compensatory (including Incidental) and Consequential Damages, what would Mrta's total damages be? A) $12,200 B) $11,700 C) $11,500 D) $2,200 E) $1,700 F) $1,500

SWFT Comprehensive Vol 2020
43rd Edition
ISBN:9780357391723
Author:Maloney
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Chapter16: Accounting Periods And Methods
Section: Chapter Questions
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Myrta entered into a contract with "Big Builder on December 1, 2018 to remodel the interior of her Coffee Shop. The Contract required Big Builder to complete the project ata cost of $10,000 on or before January 1, 2019 (so she could open her
Coffee Shop that day). Big Builder barely got started on the project by January 1, so Myrta terminated the Contract without paying Big Builder anything. Myrta then found a new Contractor, named "Better Builder who agreed to complete the same project by March 1, 2019 but at a cost of $11,500. Better Builder completed the project on March 1, 2019 and Myrta paid them $11,500. Happy the project is finally complete, Myrta still feels "ripped off by Big Builder and wants to sue them to recover her damages for breach of contract. Not only did Myrta have to pay $11,500 to Better Builder, but (i) she also had to pay a cleaning service $200 to clean up the construction mess Big Builder had left behind and (ii) she also lost an estimated $500 in profits she would have earned if Big Builder had completed their work (and she had been able to open by January 1.). Assuming she could prove both Compensatory (including Incidental) and Consequential Damages, what would Mrta's total damages be?
A) $12,200
B) $11,700
C) $11,500
D) $2,200
E) $1,700
F) $1,500

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