Question

Consumer Credit Union pays Derby $10,000 to design an ad campaign. The next day, Derby tells the credit union that he has accepted a job in Boston and cannot design the campaign.
As compensatory damages, the credit union can recover:

a. $10,000. b. $100,000. c. $0. d. $1,000.

Answer 1

Answer:

The correct answer is A that is $10,000

Explanation:

Derby is the one who took the project or work for designing  the ad campaign  and for that the Consumer credit union (who want this work to be done) paid $10,000 to the Derby for the work.

But unfortunately, next day, the Derby informs the union that they will not perform the work as they have taken or accepted job in Boston.

Therefore, as a compensatory damages, they will (credit union) recover their amount of $10,000.