Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Groves owned some rocky land that wasn't suitable for very much. He signed a contract with a gravel company named Wunder to lease the land

Groves owned some rocky land that wasn't suitable for very much. He signed a contract with a gravel company named Wunder to lease the land (for $105,000), remove gravel, and regrade the land so it was flat and level (and then useable for houses or farming). Wunder paid the money and took the gravel, but did not level the land. Groves sued for breach of contract. Wunder breached the contract on purpose because they calculated it was too expensive to level the land. The land, if improved would be worth only $12,000 more than was before the contract, while it would cost $60,000 to level the land. What is your advice to Wunder? Should he offer $12,000, or offer more to settle the case, or got to trial and try to hold his damages to $12,000, the diminution in value?

Step by Step Solution

3.21 Rating (151 Votes )

There are 3 Steps involved in it

Step: 1

Based on the information providedWunder is likely to be found liable for breach of contractThey agre... blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Advanced Financial Accounting

Authors: Thomas Beechy, Umashanker Trivedi, Kenneth MacAulay

6th edition

013703038X, 978-0137030385

More Books

Students also viewed these Law questions