Megan agrees to provide landscaping services for Mrs. Potter for $3,500. Megan expects that she will spend $1,500 on plants, mulch, and other items she needs to complete the landscaping. The day before she is supposed to begin, she buys $500 worth of plants and mulch. She is then notified by Mrs. Potter that she no longer wants the landscaping done, and will not pay for it. If Megan sues for
breach of contract, what is she entitled to? Use the formula for calculating compensatory damages from Restatement (Second) of Contracts ยง347.
What will be an ideal response?
Megan is entitled to $3,000. Her loss under the contract was $3,500. Her incidental damages were $500 (the money she spent on plants and mulch). Because of the breach, she avoided paying an additional $1000 for plants and mulch. $3,500 + $500 - $1,000 = $3,000.
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