Question
Mr. Blue has a contract with Mr. Yellow to supply 80 cases of apples. Mr. Yellow is to pick up 40 cases on October 26
Mr. Blue has a contract with Mr. Yellow to supply 80 cases of apples. Mr. Yellow is to pick up 40 cases on October 26 and 40 cases on November 1. Mr. Yellow picks up the 40 cases on October 26 but doesn't pay for them. When he comes late on November 3 for the other 40 cases, he tells Mr. Blue that he doesn't like the looks of the apples and doesn't take them, nor does he pay for the first 40 cases. Mr. Blue is unable to find a buyer until November 7, by which time the apples are no longer at their best and Mr. Blue can only get 40% of the price which he had agreed to with Mr. Yellow. Mr. Blue sues Mr. Yellow for breach of contract. Questions: 1. Could Mr. Blue have given the apples away and sued Mr. Yellow for the full price of the apples? (2 marks) 2. If Mr. Blue had been able to sell the apples in the second lot for double the original price, what could he sue for? why? (2 marks) 3. If the court finds in favour of Mr. Blue, what remedy would probably be awarded in the above case? (2 marks) 4. If Mr. Blue and Mr. Yellow had a liquidated damages clause in their contract covering inabilityto supply apples or Mr. Yellow's inability/failure to take delviery, what would this mean? (2 marks) 5. In the event that Mr. Blue had refused to supply apples and Mr. Yellow had sued for breach of contract, what remedy might the court have awarded?(2marks,
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