Am I entitled to the value of the agreed upon contract.
Get Legal Help Today
Compare Quotes From Top Companies and Save
Secured with SHA-256 Encryption
Am I entitled to the value of the agreed upon contract.
I run a small construction business. On 06/05 a customer emailed me to start a small project $3000 on her house. We agreed to meet the morning of 06/07 to get started. Her materials were purchased 06/08 and my helper was lined up to meet me Friday morning. At 10:00 pm 06/08 she texted me to tell me that she met with another contractor that was cheaper and I lost this job, plus money that I paid to my helper. What can I do?
Asked on June 13, 2019 under Business Law, Massachusetts
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 4 years ago | Contributor
You are entitled to:
1) Reimbursement of costs expended based on the contract; and
2) The "profit" you would have made.
The sum of 1) and 2) might not equal the total value of the contract, since you can't recover any costs you were able to avoid paying due to the breach.
Example: the contract is $3,000. You actually spent $800 on materials and $200 on your helper, or $1,000. Because you are not doing the work, you can avoid an extra $500 in labor costs since you won't be paying your helper or other workers. Your profit would have been $1,500. You can get the $1,000 you paid or spent and the $1,500 profit, but cannot recover the $500 in labor and other costs that you have not and will not incur.
IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.