Oregon 30-Hour Real Estate Law Practice Test

Betty's contractor replaced her leaking gutters multiple times without success. She ultimately decided to sue the contractor to recover her losses. What legal action is she undertaking?

1. Suing for specific performance

2. Filing a claim for emotional distress

3. Suing for damages and breach of contract

4. Terminating the contract

The correct answer is: Suing for damages and breach of contract

Betty's action of suing the contractor to recover her losses is classified as suing for damages and breach of contract. When a contractor fails to fulfill their obligations as stipulated in the contract—in this case, fixing the leaking gutters effectively—this constitutes a breach of contract. Consequently, the aggrieved party, in this scenario Betty, is entitled to seek compensation for any financial losses incurred due to the contractor's failure to perform their duties satisfactorily. By pursuing this legal action, Betty aims to recover her costs and any other related damages she experienced as a result of the contractor's repeated failures to fix the problem. This is a common legal recourse when a service provider does not meet the contractual agreement's terms, and it underscores the principle that parties to a contract must uphold their end of the bargain.