A general contractor's subcontractor abandons the job with $45,000 of work remaining. The general contractor hires a replacement subcontractor who charges $52,000 for the same work. What damages can the general contractor typically claim?
Correct Answer
A) $7,000
The general contractor can typically claim the difference between the original subcontract price and the cost to complete the work with a replacement contractor: $52,000 - $45,000 = $7,000 in additional costs caused by the breach.
Why This Is the Correct Answer
When a subcontractor breaches a contract by abandoning work, the general contractor is entitled to damages that put them in the same financial position they would have been in if the breach hadn't occurred. This follows the fundamental principle of contract damages - compensation for the actual financial harm caused by the breach. The general contractor originally expected to pay $45,000 for the work, but due to the abandonment, they had to pay $52,000 to complete it. The $7,000 difference represents the direct financial harm caused by the subcontractor's breach.
Why the Other Options Are Wrong
Option C: $45,000
This represents the value of work remaining under the original contract, not the damages. The general contractor would have paid this amount anyway if the original subcontractor had completed the work as agreed.
Option D: $97,000
This incorrectly adds the original remaining work value ($45,000) plus the replacement cost ($52,000), which would be double-counting. This doesn't represent any recognized measure of contract damages.
Memory Technique
Think 'DELTA DAMAGES' - you only get the difference (delta) between what you expected to pay and what you actually had to pay due to the breach.
Reference Hint
Florida Building Contractors Reference Manual - Contract Law chapter, specifically the section on breach of contract remedies and damages
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