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

Question

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

Quizplus · Accepted Answer

Builders, Inc. can recover the profits they would have made on the contract plus the costs they incurred up to the time Champ Fitness Clubs, Inc. told them to quit. This is because Champ's instruction to stop work constitutes a breach of contract, and the non-breaching party (Builders, Inc.) is entitled to damages that put them in the position they would have been in had the breach not occurred.