Beard v. S/E Joint Venture

581 A.2d 1275 (1990)

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Nature of the Case

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Facts

Beard (P) entered into a contract with S/E Joint Venture (D) for D to construct a house on a lot and convey the improved premises to P for $785,000. The approximate date of completion was stated as November 30, 1986. For a period of ninety days, the contract was contingent upon the sale of two residences. On March 16, 1987, the vendors terminated the contract; this was based on a clause in the contract that allowed D to return the deposit if performance was not possible within 365 days. P then sued D. The trial judge found that D had breached the contract and that D did not act in good faith to try to complete the construction on time. P then submitted its claim for damages based in part on a $100,000-dollar loss of bargain damages and because D breached in bad faith the benefit of the bargain damages should be awarded. The trial court decided that the benefit of the bargain damages are only proper when D breached in bad faith and it did not make that finding; as such benefit of the bargain damages were not available to P. P appealed.