Business Law Question Alina, a chef who has never owned her own restaurant, sues a builder...

Business Law Question

Alina, a chef who has never owned her own restaurant, sues a builder who failed to finish building her first restaurant on time. She presents evidence of the profits made by similar restaurants that have been in business for some time. Is this good evidence of the damages she has suffered because of the delay? To what damages is she entitled?

Expert Solution

Facts of the case :

Builder delayed to finish building due to which Alina was not able to open her first restaurant on time, where evidences of similar restaurants making profit were provided by her.

In this case, evidence of damages Alina suffered due to delay were not good due to following reason :

a. As profit she might have earned if restaurant was opened on time depends upon various factors such as quality of food, ambiance, efforts put forward to connect with customers, great staff etc.

b. Hence, instead of comparing with other restaurants cannot provide a good evidence which might cover the damages as even if restaurant was open on time there isn't any guarantee that her restaurant will earn similar profits.

She is entitled to liquidated damages and consequential damages where :

a. Liquidated damages are provided on the daily basis until the project is completed as it helps the plaintiff to cover the damages to some extent.

b. Consequential damages, if mentioned in the contract entitles the plaintiff for the loss profit, financial cost or reduced value of real estate which can negatively impact the client but such damages will only be provided if the damages were foreseeable.

keosha answered 3 weeks ago

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