Question
Merrick is a publisher. One of his printing presses breaks and he needs to purchase a new gasket for the machine. Without the gasket he
Merrick is a publisher. One of his printing presses breaks and he needs to purchase a new gasket for the machine. Without the gasket he cannot print his magazine and as a result he is losing profits everyday the machine does not work. Merrick calls Martha and orders a gasket. She verbally agrees to supply the part in 2 days for $200. On the second day, Martha tells Merrick she unfortunately cannot get the part for another two weeks.
Merrick finds another supplier and pays $300 for the part. Because of Martha's breach, his presses were down for an additional three days.
Merrick sues for $100 plus all of the lost profits from those extra days the presses were down. Martha agrees to pay the $100 but contests the lost profits.
What is Martha's best defense against paying for the lost profits?
a.
Those damages were not a foreseeable result of the breach
b.
There was no injury because Merrick received the part from another supplier
c.
Lost profits are never recoverable in a breach of contract lawsuit
d.
Merrick cannot sue for breach of contract because the agreement was not in writing
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