Alex contracted with Safeco to install a sprinkler system in his warehouse for $
ID: 1131755 • Letter: A
Question
Alex contracted with Safeco to install a sprinkler system in his warehouse for $2000. Unbeknowst to Alex, Safeco did a substandard job and installed a sprinkler system that was only 50% functional.
After the sprinkler system was installed, Alex's warehouse had an unexpected fire. In half of the warehouse, the sprinklers never came on and $5,000 worth of Alex's property was destroyed in the fire.
Alex's direct damages would be:
a) the cost of the damaged property (i.e., $5,000).
b) the difference between the value of the sprinkler system as promised ($2000) and the value as received ($1000).
c) the value of a fully functional sprinkler system as promised and well as the losses suffered as a result of the breach (i.e., $6,000).
d) the value of the contract and the costs of the losses (i.e., $7,000).
Alex contracted with Safeco to install a sprinkler system in his warehouse for $2000. Unbeknowst to Alex, Safeco did a substandard job and installed a sprinkler system that was only 50% functional.
After the sprinkler system was installed, Alex's warehouse had an unexpected fire. In half of the warehouse, the sprinklers never came on and $5,000 worth of Alex's property was destroyed in the fire.
Alex's direct damages would be:
Explanation / Answer
The answer is C -) the value of a fully functional sprinkler system as promised and well as the losses suffered as a result of the breach (i.e., $6,000).
because, Alex's property is destroyed only where sprinkles didn't came. and hence half of the property is safe and working sprinkles. so we can assume, the cost of sprinkles on half property is $1000. and the cost of demage in Alex's property is $5000. so, Alex direct damage will be $5000 plus $1000 . which is total in $6000.
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