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Mary enters into a written contract with ACE Landscaping Company whereby Mary was obligated to pay ACE $550,000 and ACE was obligated to design and

Mary enters into a written contract with ACE Landscaping Company whereby Mary was obligated to pay ACE $550,000 and ACE was obligated to design and install landscaping and hardscaping for the entirety of Mary’s newly constructed mansion on a 3.5-acre residential property. The contract included an obligation for ACE to design and install a backyard patio adjacent to Mary’s swimming pool area. The patio was valued at $50,000 of the $550,000 contract price. During ACE's negotiation of the contract with Mary, Mary informed ACE that she would schedule a fundraiser for November 15, 2020, that would be a catered affair with an estimated 250 guests. Mary informed ACE that she intended the fundraiser to be an almost exclusively outdoor affair with live entertainment and utilizing the massive backyard patio ACE was to construct. ACE agreed to complete its work by no later than November 1, 2020.

ACE was unable to complete its work on November 1, 2020, as it had agreed. In fact, ACE was unable to complete its work by November 15. ACE had completed all of the agreed-upon work, but the backyard patio was not complete. ACE informed Mary that it had completed only 1 day of the estimated 14 days required to install the patio. Mary, therefore, rescheduled her fundraiser event. Although Mary rescheduled her event, Mary forfeited the $20,000 non-refundable down payment Mary had paid to the caterer and the non-refundable $5000 down payment Mary had paid to the musicians she had hired to perform at the event.

  1. Can Mary rescind the $550,000 contract with ACE? Briefly explain.
  2. Describe the damages that Mary can realistically expect to receive from ACE if Mary sues ACE for breach of contract? Briefly explain..
  3. ACE alleges that Mary did not mitigate her damages. Is this a good argument? Briefly explain.
  4. Mary is upset with her attorney because the attorney did not include a liquidated damages provision in the contract. Should Mary be upset? Briefly explain.

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