What damages are included in a breach of contract lawsuit?

Question Details:

We had a signed contract for a project and the owner decided to hire another contractor without notifying us until 2-3 weeks following the start. What should I include with a breach of contractr lawsuit (travel, estimating, sending out contracts, etc)?

Asked 1/11/2010 under Business | 292 View(s) | More Legal Topics

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Henry Lebensbaum / Law Office of Henry Lebensbaum Answered 2 years ago | Contributor with 7 answers This attorney is licensed in Massachusetts

It depends on your damages. 

I agree that you can file a civil suit to enforce the contract or in the alternative sue for damages.

Should you wish assistance, contact me at 978.749.3606.

If you had a signed contract, you can sue for the benefit of the bargin--i.e. the amount you would have received under the contract, though the other side may then look to offset against that costs you would not incur.

Alternatively, you could sue for direct costs you incurred in spinning up for the contract--any hiring, any supplies  or software purchased, travel costs, staff time spent on spin up, telecommunications or fed ex, copies, etc.

You can't get both--you can't get both for the contracted amount and for the losses you suffered in trying to get ready for the contract. Presumably, you'll do better suing for the contracted amount. It may be possible to sue in the alternative--to have all in the lawsuit--but at the end of the day, you'll either get "benefit of the bargain" or you'll get the degree to which you were economically hurt in reliance on the contract.

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