Question
1- Mary Sue entered into an agreement to buy fifty computers from Alice for a total of $70,000. The price did not include $500 in
1- Mary Sue entered into an agreement to buy fifty computers from Alice for a total of $70,000. The price did not include $500 in freight and insurance and a $3,000 installation charge. Alice agreed to install the network for Mary Sue. Two days before delivery, Alice phoned and said she would not be able to deliver the computers and that she was going out of business. Mary Sue protested and said she needed the machines, as she had already sold her old network and had started removing it in anticipation of the new machines. Alice apologized but said there was nothing she could do for Mary Sue. Mary Sue went out and purchased similar computers from Bill for $90,000. He charged her no freight but did add a $5,000 installation fee. In addition, Mary Sue paid Ruth $10,000 for emergency computer service so that Mary Sue could continue operations until the new machines were installed. Mary Sue now sues Alice for breach of contact. Alice claims she is not liable, as she notified Mary Sue in advance and Mary Sue mitigated her losses with replacement machines. Please discuss the amount of damages, if any, that Mary Sue may recover. 2- Jordan entered into a written agreement to sell his boat to Zoe for $567,000 with delivery to take place on May 15, 2014. Zoe was to pay $100,000 at that time and the balance on or before August 1, 2014. Jordan delivered the boat and Zoe paid the first $100,000 installment. On July 25, she approached Jordan and said she was having financial troubles. She did not have the funds to pay. She told him that she would instead offer to pay the balance by transferring three valuable pieces of jewelry she owned. Jordan had the pieces examined by a professional jewelry appraiser who placed the value at "approximately $500,000." Jordan agreed in writing to "accept this has an accord. I will accept the three pieces as payment in full, so long has your payment is completed by August 15, 2014." On August 8 during a Lake Superior storm, the boat sank and could not be recovered. Zoe never delivered the jewelry and on Nov.1, Jordan sued to recover the $467,000 balance due on his boat. During the previous few months, the value of gold and precious gems had fallen so low that the jewelry was now only worth $200,000. Zoe offered to give him the jewelry but Jordan insists on payment in cash of the $467,000 balance. Please discuss amount and type of payment, if any, that Jordan may recover.
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