Introduction and Expectation Damages Self-Quiz
Ben and Jerry enter into
a contract with Moo Juice under which Moo Juice will deliver ten thousand
gallons of milk to Ben and Jerry on May 1st and Ben and Jerry will pay
$1 per gallon for the milk. On the morning of May 1st, the market price
of milk is $3 per gallon. Moo Juice refuses to deliver the milk to Ben
and Jerry for $1 per gallon. If Ben and Jerry sue Moo Juice for breach
and ask for expectation damages, they will probably:
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Ben and Jerry order a revolutionary
new industrial ice cream making machine from Thermachines Inc. Ben and
Jerry are counting on this machine to increase their production. The machine
is supposed to arrive at Ben and Jerry’s plant on May 1st but does
not arrive until May 15th. As a result, Ben and Jerry are unable to fill
some of their orders and they end up losing $25,000 in profits. Ben and
Jerry sue Thermachines for damages arising from the breach (the machine
coming late) and for special damages stemming from their loss of profits.
Assuming that Thermachines did not know and had no reason to know that
the lost profits would result from their breach, Ben and Jerry can recover
for:
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Ben and Jerry hire Eddie
to manage their ice cream manufacturing plant. Eddie is an experienced
plant manager and Ben and Jerry agree to pay him $250,000 per year for
five years. After several months, Ben and Jerry are very happy with Eddie’s
work but they fire him in order to create a job for Ben’s nephew.
Eddie sues Ben and Jerry for breach of contract. In between the date he
was fired and the date the trial started, Eddie is offered a job managing
the Breyers ice cream plant for $150,000 per year. Preferring to collect
damages from Ben and Jerry, Eddie turns down the Breyers job. If Eddie
wins his suit, he will recover:
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Ben and Jerry hire Eddie
to manage their ice cream manufacturing plant. Eddie is an experienced
plant manager and Ben and Jerry agree to pay him $250,000 per year for
five years. After several months, Ben and Jerry are very happy with Eddie’s
work but they fire him in order to create a job for Ben’s nephew.
Eddie sues Ben and Jerry for breach of contract. In between the date he
was fired and the date the trial started, Eddie is offered a job working
behind the counter at a Breyers ice cream store for $35,000 per year.
Preferring to collect damages from Ben and Jerry, Eddie turns down the
Breyers job. If Eddie wins his suit, he will recover:
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Ben and Jerry and Moo Juice
enter into a contract under which Moo Juice will ship ten thousand gallons
of milk to Ben and Jerry and Ben and Jerry will pay $1 per gallon. Three
days before the shipment is due, Moo Juice informs Ben and Jerry that
they will not be able to make the shipment. Ben and Jerry quickly arrange
for Garelic Farms to ship them ten thousand gallons of milk at $1.50 per
gallon. After Ben and Jerry receive the shipment from Garelic farms, they
sue Moo Juice for damages. If Ben and Jerry win their suit against Moo
Juice, they will recover:
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