A homeowner signed a written contract to build a swimming pool for $40,000, payable upon completion. The company delegated its duty to an independent contractor, who abandoned the job. The homeowner then hired a partnership to complete the pool for $50,000. Can the homeowner sue the company for expectation damages of $10,000?

• A. Yes, because the independent contractor did not perform.
• B. No, because delegation is permitted under the contract.
• C. Yes, but only partial damages.
• D. No, because the homeowner consented to delegation.

Answer: (A)

When a party delegates performance, the delegating promisor remains responsible for its obligations. Delegation is generally allowed unless the contract forbids it or the duties are highly personal or require special trust. Here, the company can delegate the pool construction, but it stays liable to the homeowner if the independent contractor fails to perform.

For damages, expectation damages put the non-breaching party in the position they would have been in if the contract had been fully performed. If the homeowner must hire another contractor to finish, the key figure is the extra amount spent beyond the original contract price. Here, finishing the pool with the substitute contractor costs $50,000, while the original contract was $40,000. The homeowner’s loss is $10,000, which the company is responsible for as breach of contract.

So the homeowner can recover $10,000 from the company. The fact that delegation occurred does not shield the company from liability, and the damages are not limited to any smaller amount, nor does homeowner consent to delegation negate the company’s responsibility.