Q: Hi, I entered into an agreement to purchase a modular with a stick built roof from a local GC. They initially requested
They requested a deposit of $1000 and in the agreement it says I agree to buy a home. The salesman told me this locks in my material costs for 30days. I hadn't closed on my existing home sale at the time and he told me not to worry everything would get going within 30 days. Lender he recommended failed to deliver the appraisal by the closing date which delayed us outside of the 30 days. The contractor increased his price and in light of this and a couple other issues I opted to back out of the contract. Contractor has not ordered anything or hired any subs. He is now threatening to sue me for $40,000 in profit loss. Can he do this? Thanks!
A: It's difficult to say without doing a full consultation that includes reading the contract and getting more information. However, as a general matter, a successful breach of contract claim will include the cost of lost profits. This is because the court is trying to put the plaintiff in the same position they would have been in if the contract was complied with, and compliance with the contract would have resulted in profits.
Your perspective seems to be that you want to put them in the same position as though the contract was never signed, but this is not the law.
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