Homeowner goes to his local nursery and garden supply store to purchase a new fountain for the front yard. He finds several manufactured fountains priced at $2,500 that would work as a center-piece, but each would need a custom basin to fit properly in the space in his yard. He talks to Nursery Owner who agrees to fabricate a custom basin for the fountain for a price of $3,000. Nursery Owner writes out the agreement specifying purchase of both the manufactured fountain and fabrication of the custom basin on a standard order form and Homeowner signs it.

The basin will be designed to fit the exact contour of Homeowner's yard and fabricated with high-strength fiberglass, so it is not useable anywhere else, and its parts cannot be reused.

Three weeks later Nursery Owner calls Homeowner to tell him that everything is ready for delivery. Homeowner says, "Gee, I'm really sorry, but I'm being transferred out of state for my job, and we won't be able to install the fountain. I know you had some expenses for making the basin, so let me know what those are and I'll reimburse you." Nursery Owner looks over his receipts and determines that it cost $1,500 to fabricate the now useless basin. The manufactured fountain was already in the nursery inventory and had been purchased from Wholesaler for $1,000. Later that afternoon, another customer came into the nursery and bought the waterfall Homeowner had picked out for its full retail price of $2,500, netting Nursery a $1,500 profit.

Nursery Owner asks you for advice on how to proceed.

Is reimbursement for his expenses to make the custom basin adequate compensation for Homeowner's breach? If not, what amount do you think Nursery Owner should ask for and discuss the reasons you think that figure is correct.