Question
If B and A's contract had been performed, B would have a net profit of $20,000 . This is because the house- promised to be
If B and A's contract had been performed, B would have anet profit of $20,000. This is because the house- promised to be sold to B- was $100,000, which is $20,000 cheaper than its market value of $120,000.
The cost of B's new house was $120,000. If B's contract with A would have been performed, B would have spent $100,000. However, as she spent $120,000 she is currently at- $20,000compared to $20,000, which is the amount of net profit she would've had if her contract with A had been performed.
As the contract was breached, B had to spend $300 per month for storage. B stored her belongings for 3 months, which is $900. However, she actually moved into a new house after one month, but deccided to keep her belongings for an extra two months. In regards toRemotenessof the loss caused by the storage fees, B will only be able to get damages for one month storage fee of $300 as the other two months would not have been a recognizable loss by a reasonable person. A reasonable person would certainly recognize the loss of storage fee for the "time that B didn't move into a new house". However, as she still decided to store her belongings even though she had a new house to move them into, B did not take reasonable steps to mitigate the loss caused by the storage fees. Thus, she willonly be able to receive the $300-amount for one month- cost for the storage.
Right after A cancelled the contract, B had yelled at her boss and got fired. However, regardless of her wage, she will not be able to get any expectation damage. This is also because the loss is too remote. A reasonable person would not recognnize B's unemployment being caused by the breach of contract. In fact, a reasonable person would expect a person to still keep a certain level of professionalism to their boss, even if a enraging situation had happened with a third party. In addition, at the time of contract formation, A had not known the possibility of B losing her temper and yelling at her boss. Thus, the loss is too remote; B will not be able to get damages for her 3 months of unemployment.
Expected benefit is the difference between where the innocent party isnow, and where they would be if thecontract had been performed.
B iscurrently at - $20,300(Price of original house (100,000) - Price of new house (120,000) - 1 month of storage fee ($300) = - $20,300).
If the contract had been performed,B would be at $20,000(Market value of original house (120,000) - Price of original house (100,000) = $20,000.
The difference between B's current financial state (- $20,300), and what it would have been ($20,000) is $40,300. Thus, B's expectation damages for A's breach of contract would be$40,300.
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