1. Hal, owner of an auto repair shop, hires Dennis (a contractor) to remodel his shop but does not mention that two days after the scheduled completion date, Hal is to receive five small US Army personnel carrier trucks for service, with a three-week deadline to finish the job and turn the trucks over to the Army. The contract between Hal and the Army has a liquidated damages clause call for $300 a day for every day trucks are not operable after the deadline. Dennis is five days late in finishing the remodel. Can Hal claim the $1,500 as damages again Dennis as a consequence for the tardy completion of the Army contract? Explain.
2. Albert, an Inventor, devises an electronic billiard table that looked like a regular billiard table, but when balls dropped into the pocket, various electronic lights and scorekeeping devices activated. Albert contracted with a Contractor (Mike) to manufacture ten prototypes and paid him $50,000 in advance, on a total owing of $100,000 ($10,000 for each completed table). After the tables were built to accommodate electronic fittings, Albert repudiated the contract. Mike broke the ten tables up, salvaged $1,000 of wood for other billiard tables, and used the rest for firewood. The ten intact tables, without electronics, could have been sold for $500 each ($5,000 total). Mike then sued Albert for the profit Mike would have made had Albert not breached. To what, if anything, is Mike entitled by way of damages? Explain.