Question
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
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?
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