Question
Twin Creeks Entertainment signed a deal with U.S. JVC Corp. in which JVC would buy 60,000 feature-film videocassettes from Twin Creeks over a three-year period.
Twin Creeks Entertainment signed a deal with U.S. JVC Corp. in which JVC would buy 60,000 feature-film videocassettes from Twin Creeks over a three-year period. JVC intended to distribute the cassettes nationwide. Relying on its deal with JVC, Twin Creeks signed an agreement with Paramount Pictures, agreeing to purchase a minimum of $600,000 worth of Paramount cassettes over a two-year period. JVC breached its deal with Twin Creeks and refused to accept the cassettes it had agreed upon. Twin Creeks sued and claimed, among other damages, the money it owed to Paramount. JVC moved to dismiss the claim based on the Paramount contract, on the ground that Twin Creeks, the seller of goods, was not entitled to such damages. What kind of damages is Twin Creeks seeking? Please rule on the motion to dismiss. Imagine that the court finds that the contract between Twin Creeks and JVC was not valid. Twin Creeks takes the cassette tapes that JVC refuses and sells them to another company for half the price that JVC had contracted to pay for them. Can the court still award damages to Twin Creeks?
Imagine that the court finds that the contract between Twin Creeks and JVC was not valid. Twin Creeks takes the cassette tapes that JVC refuses and sells them to another company for half the price that JVC had contracted to pay for them.
Can the court still award damages to Twin Creeks?
What type of damages is the court likely to enforce under the doctrine of promissory estoppel?
Will Twin Creeks be able to recover from JVC the difference between the original contract price and the price Twin Creeks obtained on the open market?
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