A builder agrees to complete a job for the client at a price of £50,000 but abandons it. The client pays £58,000 to another builder to finish the same work. What is the client's likely damages claim, ignoring other losses?
Answer and explanation
Correct answer: A. £8,000, the extra cost of completing the work
- Step 1: Contract damages aim to put the claimant in the position they would have been in if the contract had been performed.
- Step 2: The extra cost of completing the work is £58,000 - £50,000 = £8,000.
Answer
£8,000, the extra cost of completing the work.
Why not the others: £58,000 ignores the £50,000 the client would have paid anyway. £50,000 is the original price and is not a loss. £108,000 adds the two prices, which double counts.
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