Karl put in a written offer to buy Erik's house for $600,000 on the condition that he get a house inspector's report that was to Karl's complete satisfaction and Erik agreed. The home inspector's report stated the house was in great condition except for a deck repair that would cost $80 to fix. Karl then told Erik he would not buy the house due to the deck problem and he wanted his $60,000 deposit back. Erik said Karl could not get out of the deal for such a minor repair and he would not be returning the $60,000.They each called lawyers. Karl owns the River Inn.

On the delivery date Linens only shipped 900 tablecloths and said it couldn't provide any more. Karl was furious and refused to accept the shipment since 100 were missing. Karl bought 1,000 tablecloths from a different supplier and had to pay $50,000 so Karl claims Linens owes the Inn $10,000. Linens resold the 900 tablecloths Karl had ordered but only for $30 each so it is claiming Karl owes them $9,000. Lawyers were called.When answering the question apply all laws and concepts, that are applicable to this question.