Mad Mowers Inc.

Mad Mowers Inc. contracts to buy a batch of special lawnmower handles from its supplier, Get Bent Inc. for $10,000. The supplier Get Bent Inc. called the day before the agreed on delivery date and notified that they would not be able to fill any of the order for at least a year. Mad Mowers was

furious as they had a new trial order for Home Depot for 100 of their new Grass Eater 2000 mowers.

In a desperate attempt to supply the mowers, Mad Mowers found another supplier that could make the handles for them in about a week. The rush order of handles came at a premium price of $14000.

The supply of handles from the new supplier was delivered on time. Mad Mowers managed to make and ship 50 of their mowers to Home Depot before the agreed deadline.

Mad Mowers calculated lost profits of $20,000 on the other 50 mowers that they did not deliver on time to Home Depot. The other 50 mowers were left unfinished and unsold.

They were also concerned about their damaged relationship with Home Depot and thought they would lose future business because of their short shipment.

Cases analysis questions

1. What type of breach is this?

2. What are the liquidated damages?

3. What are the other damages, are they reasonable and will it be easy for Mad Mowers Inc. to claim them