BUSN 420 Week 4 DQ1 The Dream House

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In a contract dated June 15, 2006, Bobby agrees to build your dream house on a lot you own near Naples, Florida. The contract price is $500,000. The house is to be completed and ready for occupancy by March 1, 2007. Bobby is paid a progress payment of $100,000, for labor and materials, in October, 2006. In November, a hurricane strikes the Naples area and floods the work site. Bobby claims he had completed 50% of the job before the hurricane struck. No further work is done and Bobby walks off the job. On January 1, 2007, you declare Bobby in breach of contract and sign a contract with Sheila to complete the job for $350,000. What remedies and/or damages are available to you and to Bobby?

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