Question
Company X contracts with Solar City to install a large solar panel system on Company Xs factory rooftop for a total price of $1,000,000. Solar
Company X contracts with Solar City to install a large solar panel system on Company Xs factory rooftop for a total price of $1,000,000. Solar City experiences higher costs than it expected, in part because, after signing the agreement, China imposed an export tax on solar panel exports to the U.S., and Solar City was planning to use those panels instead of more expensive US-manufactured panels. Solar City stops work and says it wont complete the project unless Company X agrees to pay an additional $200,000. Company X has already paid $250,000 to Solar City in deposit and progress payments, and refuses to pay the proposed additional amount. Instead, Company X contracts with Supplier B to finish the project for $1.2 million in total payments to Supplier B. Explain whether Solar City is likely to be found liable for breach of contract, and, assuming it is found liable, explain what amount of damages Company X can recover. Use specific dollar amounts and explain how you arrived at them.
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