In preparation of the Holiday season, Kris Kringle’s Christmas cookies orders 100 pounds of a special ingredient from X corporation at a price of $10 per pound to be paid upon receipt. This ingredient is essential to a certain kind of cookie for which Kringle sells on average 2000 cookies during the Holiday season at a profit of $1 per cookie.

a) If X Corp never supplies the secret ingredient and Kringle has to buy the ingredient elsewhere at $15 per pound what type of damages may Kringle sue for and what would be the appropriate amount?

b) If X Corp never supplies the secret ingredient and Kringle can not locate the ingredient elsewhere what type of damages may Kringle sue for and what would be the appropriate amount?

A famous actress was signed to film a romantic comedy set in Los Angeles for 1 million dollars. The picture was cancelled and she sued because the contract was guaranteed . The film studio responded that she was not entitled to anything because they offered her the opportunity to perform in a western to be shot in Australia for the same money and she refused to take it.

a) What is the legal concept called requiring a non-breaching party to reduce any damages suffered from the breach?

b) Was the film studio correct in its assertion that the actress failed to do this? Why or why not?