LPAB Diploma In Law Practice Questions - Legal Profession Admission Board (NSW) Diploma In Law Examinations Exam

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A builder repudiates a fixed-price construction contract before completion. The owner accepts the repudiation and sues for damages. Which principle governs the measure of damages recoverable for the breach?

The owner is entitled to damages putting them in the position they would have been in had the contract been performed The owner is entitled to damages putting them in the position as if the contract had never been made The owner may recover only the deposit paid, as a penalty The owner may recover punitive damages to deter future breaches

Correct Answer:

The owner is entitled to damages putting them in the position they would have been in had the contract been performed

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