Purchasers repudiated an agreement of purchase and sale for a newly constructed custom home before completion and sought return of their deposit.
The vendor builder accepted the repudiation, completed construction with design changes, and later sold the property to another purchaser at a lower price after a lengthy marketing period.
The court held that damages for breach of contract are determined using the expectation measure, placing the innocent party in the position it would have occupied had the contract been performed.
The purchasers failed to prove that the builder acted unreasonably in mitigating its losses by completing construction and marketing the home.
Judgment was granted on the builder’s counterclaim for damages including carrying costs, financing costs, commission, and price differential.
