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O and C entered into a construction contract under which C was to construct a commercial office building and receive payment of one million dollars from O. During performance, O wrongfully terminated the contract and ordered C to leave the project. C's costs before termination were $600,000. It would have cost C an additional $600,000 to complete the work. C has been paid progress payments of $500,000.
Questions
1. How much should C be able to recover from O and why?
O and C entered into a construction contract under which C was to build a commercial building in accordance with plans and specifications drafted by A, as architect retained by O. The contract stated that for every day of unexcused delay, O would deduct $2,000 as a "penalty." The contract price was $250,000. C was twenty-five days late.
1. Can O recover $50,000 yes or no? and why or why not?
2. If the clause is invalid, what are O's damages?
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