Question: Problem 6-1 Efficient Breach. Page 559. [250] Contractor agrees to build a house on plaintiffs' lot for a total price of $250,000. After contractor has
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Problem 6-1 Efficient Breach. Page 559. [250] Contractor agrees to build a house on plaintiffs' lot for a total price of $250,000. After contractor has completed about one fifth of the work but before buyer has paid anything, contractor defaults. Buyer hires another contractor who completes the work for $300,000. Buyer sues the first contractor for $50,000. Defendant contractor makes the following arguments: 1.] get a credit, or about $50,000, for the work I did, and so no damages are due. 2.When completed, the house enhanced the value of the lot by $450,000, therefore I owe no damages. 3.The proper measure of damages is Market Price less Contract Price, not Replacement Contract Price less Contract Price. Since the going market for the contracted work (after I had done one fifth) would have been only $210,000, I owe no damages and, in fact, the buyer owes me about $40,000 in restitution for work I did for which I was never paid. Which of these arguments may work
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