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last minute contract cancelation damages

If person A hires person B for 4 hours at $40/hr ($160 total) but person B must pay $20 in gas to get there and back. But last minute Person A cancels and person B gets another job opportunity. If person B sues for breach of contract what will person A have to pay? $140 or $160? or if B gets the new job do they have to pay at all?

1 reply

Oct 26, 2020

The damages for the breach are whatever money was owed by Person A, minus the cost of performance by Person B. So basically the profit. If gas money was not mentioned in the contract, then it is not factored into the damages. Driving to work is your own personal expense. If the second job was a job that Person B would not have been able to do had Person A not cancelled, then its possible that Person A would not owe anything because Person B has mitigate their damages by finding a replacement job that it would otherwise have been unable to do.

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