Question
JoeBlow, Inc. makes snowblowers. One of the parts it needs to make snowblowers is called a Doodad. JoeBlow entered into a legally binding contract with
JoeBlow, Inc. makes snowblowers. One of the parts it needs to make snowblowers is called a Doodad. JoeBlow entered into a legally binding contract with Acme Manufacturing, Inc. to buy 100,000 Doodads for $100,000 total, or $1 per Doodad. Due to staffing shortages and supply chain problems in China, Acme was unable to fulfill the contract and breached, delivering zero Doodads, so Joeblow instead had to buy the Doodads from two other companies at the cheapest prices it could get. It bought 50,000 doodads from one company for $60,000 and another 50,000 doodads from a second company for $62,000. How much will Acme have to pay Joeblow in damages for its breach of contract? Explain.
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