Question

Mr and Ms. Smith contracted for Builder to construct a house on property he owned and sell it to the Smiths for $785,000. The house was to be completed by a certain date and builder new that the Smiths were selling their house in reliance on the completion date of the house. Builder was late on construction which forced the Smiths to pay $32,000 in rent. Ultimately, Builder never finished the home and the Smiths moved elsewhere and sued.

An expert indicated that the market value of the house would have been $885,000.
How much money are the Smiths entitled to?

A) $32,000
B) $100,000
C) $785,000
D) $885,000

Answer 1

The Smiths are entitled to a total of $132,000, which includes the difference between the contract price and the market value of the house, as well as the rent they paid due to the builder's delay.

Step-by-step explanation:

The Smiths are entitled to the difference between the contract price and the market value of the house. In this case, the difference is $100,000 ($885,000 - $785,000). Additionally, they are also entitled to the $32,000 they paid in rent due to the builder's delay. Therefore, the Smiths are entitled to a total of $132,000 ($100,000 + $32,000).