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Inventor contracts with Factory to have Factory produce Investor's new product, with Factory to receive a set price per each unit produced. In order to
Inventor contracts with Factory to have Factory produce Investor's new product, with Factory to receive a set price per each unit produced. In order to begin production of Inventor's new product, Factory must retool its assembly line, which takes one week and requires Factory to shut down the assembly line. After completing retooling but before beginning production, Inventor calls Factory to cancel the contract. When Factory sues Inventor for breach, Factory will be able to recover: I. the direct cost of retooling. II. profits lost when the assembly line was being retooled. III. the cost of raw materials purchased for production, offset by any proceeds from their resale. IV. commissions paid to resell raw materials purchased for production
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