Question

On November 15, a builder in a signed writing contracted with a homeowner, for an agreed price, to personally remodel the homeowner's kitchen according to specifications provided by the homeowner, and to start work on December 1. The builder agreed to provide all materials for the job in addition to all of the labor required. On November 26, the homeowner, without legal excuse, repudiated the contract. Notwithstanding the homeowner's repudiation, however, the builder subsequently purchased for $5,000 materials that could only be used in remodeling the homeowner's kitchen and promptly notified the homeowner, "I will hold you to our contract." If allowed to perform, the builder would have made a profit of $3,000 on the job. If the homeowner refuses to retract his repudiation, and the builder sues him for damages, what is the maximum that the builder is entitled to recover

Answer 1

the builder could recover up to $3,000 which was his expected profit form the job.

Step-by-step explanation:

In contract law, this is referred to as expectation damages. When one party breaches a contract, the non-breaching party is allowed to sue and recover the amount that he/she expected to win or gain with the transaction. In this case, the builder expected to earn a $3,000 profit, therefore, he can sue to recover the $3,000 of lost expected profits.