You represent Monica's Steakhouse, a large, upscale steakhouse in New York City. Monica's Steakhouse recently added lobster to its menu. To accommodate this new menu item and the upcoming Valentine's Day rush, Monica's Steakhouse ordered 500 lobsters from Chandler's Lobsters for $10,000. The lobsters were to be delivered on the morning of February 14 to Monica's Steakhouse. On the morning of February 14, Chandler's Lobsters, unbeknownst to Monica's Steakhouse, delivered only 100 lobsters, and Monica's Steakhouse paid Chandler's Lobsters $10,000. As a result of the shortage of lobster, Monica's Steakhouse was unable to serve 400 people with lobsters on February 14 and lost several customers, who left the restaurant unhappy.

A demand letter to Chandler's Lobsters and demand reimbursement of $10,000 ($8,000 for the undelivered lobsters and $2,000 for consequential damages).