Contract Cancellation Cause of Loss

We have a client who ordered $20,000 worth of new kitchen cabinets before they had a fire. The cabinets were never actually manufactured before the fire occurred, however, the contract contained a clause that in the event that the order was cancelled, there would be a 15 percent fee to cover design expenses.

Since the homeowner had no use for the cabinets after the fire, they cancelled the order and incurred a $2,912.16 design fee.

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