1) Nancy purchases a homeowner's insurance policy, which contains a provision: "No claim for recovery under this contract shall be valid unless the claim is filed within 3 months of when the damage is incurred." On July 1, 2013 Nancy's basement is flooded and the carpet and furniture are ruined. Nancy files a claim for repair and/or replacement of her personal property with the insurance company on October 15, 2013. The insurance company denies her claim. Is the denial appropriate? Explain.

2) Auto Supply Mart, a retail outlet located in upstate New York, has ordered 2500 ice scrapers from wholesaler, Continental Corp. The contract sets the date of delivery as October 1st. Continental Corp. delivers the ice scrapers on December 31st. Does Auto Supply Mart have an action for breach of contract? If so, what type of damages would the court award to Auto Supply Mart?