Flashcards Studio

A hotel contracted with a contractor to renovate a ballroom for $180,000, with completion by May 1 for a wedding season opening. The contractor repudiated on March 1. The hotel promptly hired a replacement contractor who completed the same work by May 1 for $205,000. The hotel also paid $3,000 in reasonable architect and permit fees to shift the work to the replacement contractor.
The hotel seeks $60,000 in lost profits from weddings it says it would have booked if the original contractor had performed. Before contracting, the hotel told the contractor that the ballroom had to be ready for wedding season, but the hotel had no signed wedding contracts at that time. The hotel also seeks $8,000 for renting a temporary event tent for June even though the ballroom was ready by May 1.
Analyze the damages the hotel is likely to recover, including expectation, incidental, consequential, certainty, foreseeability, and mitigation limits.