1. On June 1, Dwight contracts to sell a large tract of land to Andy for $ 500,000. The closing date is set for August 1. Andy's plan, which Dwight is aware of, is to create a ranch on the land. During July, Andy purchases a large herd of cattle and arranges to have the cattle delivered to the land he is purchasing on August 1. In late July, Dwight repudiates the contract with Andy deciding that he wants to keep it in his family. The fair market value of the land at that point is $470,000. Because of Dwight's repudiation, Andy incurs storage costs for the cattle of $10,000 for the month of August. By September, Andy has found and purchased a new tract of land on which to put the cattle. What damages, if any, can Andy recover from Dwight? Explain your reasoning.

2. Real estate prices are falling, so Seller enters into a contract on April 2 to sell her condo for $400,000 to Buyer with the closing on May 1. During April, the price of real estate falls even further. On May 1, Buyer breaches by not showing up at the closing. Seller immediately puts the condo back on the market. Seller is afraid that the market will drop even more rapidly, so she pays a $1,000 fee to feature the property on a TV show about prime real estate. Because of the TV show, Seller is able to sell the condo almost immediately, but for a price of $370,000. One month later, the real estate market miraculously rebounds, and the fair market value of the condo Seller sold is back to $400,000. In a suit against Buyer for breach of contract, what damages, if any, may Seller recover? Explain your reasoning.

3. In September, Buyer and Seller entered into a written agreement by which Buyer was to purchase Seller's residence for $205,000. The sales escrow was to close on December 1. However, Buyer defaulted, and the sale did not take place. On December 7, Seller entered into a second contract to sell the property to another party. Under this second sales agreement, the purchase price was $215,000. The second sale proceeded to close on February 15. During the period from December 1 (when Buyer breached) to February 15 (when the second contract closed) the Seller incurred costs of $3,000 for insurance, gardening, property taxes, utilities, and interest payments on its mortgageall of which are costs Seller would not have had if Buyer had not breached. What are Seller's expectation damages? Explain your reasoning.

4. Reporter worked for the Billings Gazette, the largest daily newspaper in Montana and the only daily newspaper in Billings. The Gazette wrongfully terminated Reporter's employment. After he was fired, Reporter applied to four newspapers, restricting his job search to papers of equal or greater circulation than that of the Gazette, and only those located in the western United States. The Sacramento Bee, an award-winning newspaper in California's capital, has nearly five times the circulation of the Billings Gazette. The Bee indicated interest in hiring Reporter but at a lower salary than he earned at the Gazette. Reporter rejected the Bee's interest. The other three newspapers that Reporter applied to hired other journalists. There were positions open for journalists at weekly newspapers in Montana - including one in Billings - but Reporter refused to apply for these positions since these were not daily newspapers. There were also daily newspaper reporter positions open in other cities in Montana but none of those papers had close to the circulation of the Gazette, so Reporter did not apply. Reporter was qualified and had the credentials to work for these other Montana newspapers. Instead of looking for additional work, Reporter began to do freelance work for several publications, including U.S.A. Today, Time Magazine, The Denver Post, The Miami Herald, and several other nationally known publications. Reporter earned approximately half of his former salary as a freelance writer. Reporter successfully sued the Gazette for breach of contract. During the remedies phase of the trial the only issue was whether or not Reporter mitigated the damages. If you were the judge at a bench trial, how would you rule? Explain your reasoning.

5. On June 1, Owner entered into a contract with Concrete Co. (CC) for construction of a cement foundation and basement for a house that Owner was having built. The rest of the house was to be built by another construction company. The contract specifications required the floor to be four inches in thickness and that all work was to be completed in a workmanlike manner according to standard practices. The contract required that the concrete work be done by July 1. CC knew that Owner wanted the construction on the house to begin on July 1 so that the house would be ready to occupy by September 1. The total cost for the foundation and basement was to be $6,000, which was payable in two installments$2,000 on July 1 and the remaining $4,000 on September 1. By July 1, CC completed the foundation and basement. The cement was dry and ready for the other builders to start constructing the house. Owner made the first payment of $2,000 to CC. The other contractors started building the house on top of the foundation and basement. By August 1 (about the time the house was half built), it became apparent that the basement was laid down in a negligent manner. CC had hired unskilled laborers to do the work. Cracks appeared throughout the basement floor. Structurally, the house would not collapse because of the cracks in the floor; however, it is possible that there might be groundwater seepage through the cracks. If repairs are not done, then the house is worth only $500 less than if the CC had performed according to the terms of the contract. Owner asked CC to redo the work, but CC refused to do so. Owner sought an estimate from a reputable company on whether the foundation could be fixed even though the house was half built. The reputable company estimated that it would cost $9,000 to (1) chop out the defective floor with a jackhammer, (2) remove the old cement through the basement windows, and (3) pour a new floor through the basement windows. Owner hired the reputable company to do this work and paid the reputable company $9,000. Although Owner made the July 1 payment to CC of $2,000, Owner did not pay CC the second payment of $4,000. CC sues Owner for the remainder of the contract pricei.e., $4,000. Owner counter-claims, seeking the repair cost of $9,000. At trial, a jury finds that CC totally breached the contract. What remedy should be given to Ownerthe cost to repair or diminution in value? Should CC recover for the $4,000?