Cleo, a local business owner, has been very stressed out so she decides to advertise and

sell her bookstore business and travel.

Alan, a regular customer of the bookstore, was familiar with the bookstore and always

had dreams of owning and operating the business. Alan sends Cleo a detailed offer to

buy the bookstore for $$200,000,$ with $$50,000$ being paid as a down payment in cash, and

the other $$150,000$ to be paid within $12$ months of the closing date of the transaction.

Cleo sends Alan an email response: "The total price seems fine, except I need more cash

upfront to travel $$ at least $$100,000.$ Tell me how much you can pay upfront." Alan

responds to the email: "I don't have that much money right now, there is no way I can pay

that much cash".

After researching travel costs, Cleo decides that $$50,000$ is probably enough as a down

payment and sends Alan an email: "After doing some research on travel costs, I have

decided to accept your offer". When Alan read the email, he began to rethink buying the

business and got cold feet on the transaction. He really just enjoyed going there to talk to

the regulars and loiter $$ once a potential reality, Alan starts to believe owning a business

sounds like too much work. Accordingly, Alan tells Cleo that she refused his offer so there

was no deal to accept.

Question:

Assume that Cleo successfully recovers the bookstore from Alan.

Invigorated from her travels, Cleo is determined to make the bookstore a success once

again. Cleo decides to plan a New Launch Party on April $1,$ which is the same day the

much anticipated and in demand book, "Eat, Pray, Recover", will be released in stores

nationwide.

On March $1,$ Cleo orders $100$ copies of the book from Rainforest Books for $$5$ each. Cleo

expects to sell all the books during the New Launch Party for $$20$ each. On March $20,$

Cleo gets a call from Rainforest Books, who advises that only $50$ copies can be delivered

by April $1.$ Cleo calls around and can order $100$ books from another supplier, but it will

cost her $$10$ a copy.

Required:

Discuss what steps Cleo should be considering, and the type of damages she could

expect to be awarded. Explain how those damages may be calculated. Be certain to

explain the applicable legal principles as part of your answer.