Builders Inc. agrees to construct an office building for Commerce Center Corporation. The project proceeds according to plan, but before it is done, the buyer tells Builders to quit. In a suit for breach, Builders may recover (A) the contract price less costs of materials and labor. (B) the costs needed to complete construction. (C) the contract price. (D) profits plus the costs incurred up to the time of the breach.

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Business

Evony

21 December, 23:36

Builders Inc. agrees to construct an office building for Commerce Center Corporation. The project proceeds according to plan, but before it is done, the buyer tells Builders to quit. In a suit for breach, Builders may recover (A) the contract price less costs of materials and labor. (B) the costs needed to complete construction. (C) the contract price. (D) profits plus the costs incurred up to the time of the breach.

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Julianne Holt · Answer 1

(D) profits plus the costs incurred up to the time of the breach.

Explanation:

Commerce Centre corporation started the project with Builder's Inc, and Builder's Inc performed the project well. So a termination of the project was not based on bad performance.

Builder's Inc has the right to file for breach of contract by Commerce Centre corporation. They can request a recovery of profit plus cost incurred up till the time of contract breach. This will make up for the resources Builder's Inc has put into the project.