Reference no: EM131745144

1. Light contracted to build a house for the Mullers. After the job was completed, they refused to pay the balance due because they said some of the work was done in an unworkmanlike manner. When Light sued, the Mullers counterclaimed for $5,700 for delay under a liquidated damage clause in the contract, which provided that Light would have to pay $100 per day for every day of delay in completion of the construction. The rental value of the house was between $400 and $415 per month. Should the liquidated damage claim be enforced? Explain in two paragraphs

2. Tristar bought a 30-second commercial for its new skin care product on PM Evening Magazine on February 27, 1991, because that program was scheduled to air a news segment on skin care. The segment talked about products contain- ing "Nayad," an ingredient in Tristar's product. The contract provided that the ad "must run on Tuesday February 27, 1991." The ad did not run during the show, and Tristar sued for damages, including lost profits. Westinghouse sought a ummary judgment, arguing that lost profits of a new company are too speculative to be recovered. Are lost profits too speculative to be recovered as damages? Explain in two paragraph