When the paying party breaches a building contract at a time that the building is only partially complete, which of the following is TRUE?

• A. The builder may usually complete the building.
• B. The builder is entitled to the full contract price.
• C. The builder's recovery need not take into account any amount already paid to the builder.
• D. The builder's recovery must take into account the cost of completing the building.

Answer: (D)

When a buyer breaches a building contract after partial work is done, damages for the builder are determined by the cost to finish the project, not by the full contract price. This approach puts the builder in the position they would be in if the job were completed, so the recovery covers the additional expense needed to complete the construction. The calculation also accounts for what has already been paid and the value of work already performed, so the net recovery reflects the remaining cost to finish rather than the total contract amount. That’s why taking into account the cost of completing the building is the correct principle. The other options misstate the remedy: you don’t automatically get the full contract price, you do consider what has already been paid, and completion may be pursued to measure accurately the damages.