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A contracts to sell B 100 widgets for $100 for use in B's factory. As A knows, the failure of the widgets to conform to
A contracts to sell B 100 widgets for $100 for use in B's factory. As A knows, the failure of the widgets to conform to specifications will cause B's assembly line to shut down and B will lose profits. Therefore, A and B specify in their contract that any failure of the widgets to conform to specifications will cause A to be liable to B for $1,000,000. The widgets delivered are defective and have a market value of zero, and B loses $5000 in profits. What will B be able to recover from A?
a. | $100 | b. | $5000 | c. | $5100 | d. | $1,000,000 |
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