Final answer:
Milton's liability would likely be to reimburse the client for the extra expense of adding the missing cupboards, which is option 1. Options 2, 3, and 4 are less likely, and the exact liability would depend on the contract terms and local laws.
Step-by-step explanation:
Milton's liability for the error made in the design of the condos with only one cupboard instead of two would depend on the terms of the contract he signed with Marcos and Co. and the legal principles applicable to such professional errors in the jurisdiction where the building is located. Typically, architects or designers could be responsible for the cost to correct the error or for any resulting damages due to their professional negligence or breach of contract. If the condos are still usable, Milton might be liable for the cost to rectify the mistake, which could be option 1: Milton has to reimburse the client for any extra money spent to fit in an extra cupboard. Option 2 suggests Milton pays the difference in market value, which might not be applicable if the sole issue is the cupboard and the condos are otherwise perfect. Option 3 is less likely since the contract with the tenants is usually Marcos and Co.’s responsibility, not Milton’s unless such responsibility was specifically transferred to him in the contract. Option 4 is also less likely unless there was a legal statute violated causing the state to impose a fine. Legal advice should be sought to determine the exact liability.