Question
On March 1, Shoshanah agreed to manufacture and sell a widget to Marshall for a total price of $50 000. He paid $20 000 immediately
On March 1, Shoshanah agreed to manufacture and sell a widget to Marshall for a total price of $50 000. He paid $20 000 immediately and promised to pay the remainder on June 15. The contract required Shoshanah to deliver the widget to Marshall on June 1. On April 15, Marshall spent $10 000 altering his production plant in a way that would accommodate the widget that he expected to receive from Shoshanah. On May 20, Shoshanah informed Marshall that she would not be able to deliver as promised. On June 1, the market value of a widget was $65 000. Marshall can acquire a similar widget for that amount, but he will have to once again spend $10 000 in renovations to his production plant to accommodate that substitute. (No two widgets are exactly alike and each one has unique requirements.) Is Marshall entitled to receive damages? If so, on what basis and in what amount? Which one should he choose?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started