N.C.P.I.—Civil 503.27

Direct damages are the economic losses that usually or customarily

result1 from a breach of contract. In this case, you will determine direct

damages, if any, by determining the reasonable cost to the plaintiff of

labor and materials (and other costs) necessary to

[complete the [repair] [(name service)] in conformity with the

requirements of the contract]

[correct the [repair] [(name service)] to bring it into conformity with

the requirements of the contract.2

(NOTE WELL: If there is any evidence that the cost to

correct would be economically unreasonable, the court

must give the following additional instruction:

However, if you find that this corrective work would be

economically unreasonable to perform under the

circumstances, a different measure of damages will

apply. In determining whether this corrective work

would be economically unreasonable to perform, you

may consider

[whether the [repair] [name service] can be corrected only at a cost

that is unreasonably disproportionate to the value to be added to the

(name item or service) by performing the corrective [repair] [name

service]3

[whether a substantial portion of the (name item or service) would

have to be [undone] [redone] [destroyed] in order to perform the

corrective [repair] [name service]4

[whether the plaintiff will be denied the substantial benefit of his

bargain unless the corrective [repair] [name service] is performed, even if

a significant amount of the [repair] [name service] already completed

must be [undone] [redone] [destroyed].5

[whether the parties' expectations regarding a remedy for non-

conforming work are set forth in their contract].6

If you find that the corrective [repair] [name service] proposed by

the plaintiff would be economically unreasonable to perform under these

circumstances, then you instead determine the plaintiff's direct damages,

if any, as follows: First, you will determine the fair market value of the

(name item or service) as actually performed by the defendant on [the

date that (describe events constituting breach)] [(specify date)].

Second, you will determine the fair market value the (name item or

service) would have had if it had been [repaired] [performed] in

conformity with the requirements of the contract.7 Fair market value is

the amount which would be agreed upon as a fair price by a seller who

wishes to sell, but is not compelled to do so, and a buyer who wishes to

buy, but is not compelled to do so.8 Third, you will subtract the fair

market value of the (name item or service) had it been [repaired]

[performed] as contracted for from the fair market value of the (name

item or service) as actually [repaired] [performed]. [The difference would

be the plaintiff's direct damages.] [The difference less any portion of the

contract price which the plaintiff has not paid to the defendant would be

the plaintiff's direct damages.]

If, on the other hand, you find that it is not economically

unreasonable under the circumstances to perform the corrective work,

then the plaintiff would be entitled to recover the reasonable cost of

labor and materials (and other costs) necessary to [repair] [perform] the

(name item or service) in conformity with the requirements of the

contract.)]