Reference no: EM133652949

Question

A businessman owns a luxury hotel which he is in the process of remodeling. The businessman entered into a contract with a tile contractor under which the tile contractor agreed to install new tile in all 200 of the hotel's rooms. Since the businessman desired only the best for his hotel, the tile specified under the contract was very expensive. In addition, the tile had to be specially ordered because the contract required each tile to be embossed with a unique pattern designed specifically for the hotel. The contract specified that upon completion of the job, the businessman was to pay the tile contractor $800,000. The tile contractor ordered and received delivery of the specified tile at a cost of $300,000. However, before the tile contractor began installing the tile, the businessman informed the tile contractor that he had decided "to go in a different direction," and repudiated the contract. The tile contractor sued the businessman for damages. At trial, neither the tile contractor nor the businessman was able to establish the cost of completing the project because it was too speculative under the circumstances. Disregarding incidental or consequential damages, how much may the tile contractor recover in an action.