With summer approaching, Bert needed a new air conditioning system. Most air conditioning contractors offered “Monster” brand air conditioners, with installation, for $2,500. Maximum Heating and Cooling offered the same Monster brand air conditioner for $2,000. Bert signed a contract with Maximum for the Monster air conditioner, with installation, for $2,000. Later, Maximum refused to honor the contract, and Bert sued. Most likely, Bert will be awarded damages of _____________.
Explanation
Answer: D - $500. Bert agreed to pay $2,000 in return for the air conditioner, but Bert neither paid the $2,000, nor received the air conditioner. Thus, Bert has not paid any consideration (has not lost any money). Nonetheless, part of the benefit of the bargain was the $2,000 price (a savings of $500 compared to Maximum’s competitors). To get the same Monster air conditioner, Bert will now have to pay $2,500 to a competitor. Therefore, if Bert does purchase from a competitor, Bert will be entitled to $500 in damages: the difference between the bargained-for price and the price Bert must pay to the competitor.
