Introduction and Expectation Damages Interaction 1

Introduction and Expectation Damages Self-Quiz

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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:

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:

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:

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:

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: