Question

Clay Pots pays Dora $25,000 to propose an online marketing campaign. Two days later, Dora tells Clay Pots that she has accepted a job with its competitor Earthenware Inc. and cannot plan the campaign. As compensatory damages, Clay Pots can recover:________.

a. ​$0.
b. ​$2,500.
c. ​$25,000.
d. ​$250,000.

Answer 1

The correct option is C,$25,000

Step-by-step explanation:

In discharging a contract ,it is mandated that the parties should be restored back to their previous positions as much as possible,prior to entering into the agreement.

In other words,prior to paying Dora Clay Pots has a cash amount of $25,000 which has been parted with as a consideration for the online marketing campaign,hence Clay pots should be restored to its prior position of having at its disposal cash of $25,000.

Conclusively,the compensatory damages is the return of cash of $25,000.