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Chef and Remodeler enter into a contract under the terms of which Remodeler will remodel Chef's kitchen for a price of $10,000. It will cost Remodeler $6,000 for the appliances and other materials she will need to complete the job. When Remodeler has incurred $4,000 in unrecoverable costs, Chef breaches. Prior to the breach, Chef had paid Remodeler $5,000 in progress payments. Let's calculate Remodeler's damages. First, what is her "loss in value?" |
| $4,000 |
| $5,000. |
| $6,000 |
| $10,000 |