Case 1 (12 points)

QQ, Inc., contracts with basketball shoe artist Vacay to purchase 500 pairs of shoes designed and produced by Vacay. The contract specifies that QQ will pay $100 per pair, for a total of $50,000. The contract specifies that Vacay will deliver the shoes no later than 10 days before the opening day of basketball season.

Since it will take QQ 3 days to distribute the shoes to the locations where they will be sold, this time frame allows QQ to take advantage of the unusually high demand for designer shoes during the week before the opening of basketball season. During this week, designer shoes sell for an inflated price of 50% more than regular price.

The regular price for the Vacay shoe is to be $200, but, based on past sales data, QQ expects to sell all 500 pairs of the shoes during the first week of release.

Vacay delivers the shoes 6 days late, 4 days before the start of basketball season. Upon inspection, QQ discovers that 50 pairs are so damaged that they must be sold at a substantial discount. QQ can distribute the rest of the shoes to the desired locations in one day, but must pay higher delivery fees than expected to do so. QQ does this and the shoes arrive at the locations 3 days before the start of the season. During these 3 days, QQ sells 300 pairs at the inflated price. QQ is then forced to sell the rest of the shoes at regular price.

QQ sues Vacay for breach of contract. Did Vacay breach the contract? Explain. If so, identify, define, and explain the remedies that QQ might reasonably seek to recover in this situation, and assess their chances of being awarded each of the identified remedies.