REMEDIES

The Steak 'n Shake restaurant chain entered a contract

with Pepsi to replace King Cola with Pepsi in all its

stores. Several issues surrounding the contract's execution

strained the agreement, and Steak 'n Shake canceled

the contract and refused to perform. Pepsi sued,

and in court Steak 'n Shake insisted that Pepsi had no

"legally cognizable" damages because all potential

profits were purely speculative. Pepsi argued that it

stood to gain from the contract and should be compensated

for the breach even though damages could not be

calculated exactly. The damages could be equal to what

it reasonably stood to gain from the contract if not for

Steak 'n Shake's breach.

CASE QUESTIONS

1. Will a court award damages to Pepsi even though

the company admitted the damages could not be

calculated exactly?

2. What other types of damages or relief could Pepsi

seek?