Crucial Exams

Multistate Bar Examination Practice Question

A tech startup entered into a contract with a software developer to create a custom application for $50,000. The startup paid a $20,000 deposit upfront. The developer failed to deliver the application as promised and breached the contract. The startup hired a different developer to complete the project for $55,000. Additionally, the startup incurred $5,000 in lost profits due to the delay in launching the application to its clients. What is the proper measure of damages the startup is entitled to recover from the original developer?

  • $10,000, representing the extra cost of a substitute developer and lost profits, less the initial deposit already paid.

  • $15,000, representing the difference between the original contract price and the replacement cost.

  • $55,000, representing the cost paid to the substitute developer.

  • $25,000, representing the deposit plus the lost profits.

Multistate Bar Examination
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