Question

Rita contracts to work for Social Media Corporation (SMC) during April for $4,500. On March 31, SMC cancels the contract. In mitigation, Rita obtains a similar job with Tech Talk, Inc., which pays $3,500. But she needs to relocate for a week to do so. Her motel bills are $350.00. Rita files a suit against SMC. As compensatory damages, Rita can recover __________.

Answer 1

$1,350 per month

Step-by-step explanation:

The reason is that the damage due to breach of the contract is always compensated and the damage caused by the breach of the company in this case is $1,350 ($4,500 - $3,500 + $350).

So the company is liable to compensate Rita for its breach of contract and the amount that it will compensate to Rita would be $1350 per month till the agreed time of contract to keep Rita for $4500.