Dean and Donna Testa hired a home inspector before they purchase a $250,000 home. The inspector charged $400. The original contract for his services contained a clause titled, "Consequential Damages." The clause was drafted by the Testa's and stated that if the inspection failed to identify flaws which resulted in expensive repairs, the inspector would pay for the repairs. The inspector's final report stated that the home's septic system had all 4 required parts. A reasonably competent inspector would have discovered that the system did not have all 4 parts. Each of the 4 part costs $10,000. After the purchase, the Testa's discover that 2 of the 4 parts of the septic system are missing. The Testa's sue the inspector. Group of answer choices The Testa's damages are limited to the value of the contract, $400. The Testa's may recover punitive damages for fraud. The Testa's may recover $20,000 The Testa's may recover $40,000.
Dean and Donna Testa hired a home inspector before they purchase a $250,000 home. The inspector charged $400. The original contract for his services contained a clause titled, "Consequential Damages." The clause was drafted by the Testa's and stated that if the inspection failed to identify flaws which resulted in expensive repairs, the inspector would pay for the repairs. The inspector's final report stated that the home's septic system had all 4 required parts. A reasonably competent inspector would have discovered that the system did not have all 4 parts. Each of the 4 part costs $10,000. After the purchase, the Testa's discover that 2 of the 4 parts of the septic system are missing. The Testa's sue the inspector. Group of answer choices The Testa's damages are limited to the value of the contract, $400. The Testa's may recover punitive damages for fraud. The Testa's may recover $20,000 The Testa's may recover $40,000.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Question
Dean and Donna Testa hired a home inspector before they purchase a $250,000 home. The inspector charged $400. The original contract for his services contained a clause titled, "Consequential Damages." The clause was drafted by the Testa's and stated that if the inspection failed to identify flaws which resulted in expensive repairs, the inspector would pay for the repairs.
The inspector's final report stated that the home's septic system had all 4 required parts. A reasonably competent inspector would have discovered that the system did not have all 4 parts. Each of the 4 part costs $10,000. After the purchase, the Testa's discover that 2 of the 4 parts of the septic system are missing. The Testa's sue the inspector.
Group of answer choices
The Testa's damages are limited to the value of the contract, $400.
The Testa's may recover punitive damages for fraud.
The Testa's may recover $20,000
The Testa's may recover $40,000.
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