Reference no: EM13768921
1. The Statute of Frauds
Johnny needs to buy a lawn mower. His lawn is relatively modest, so he began looking for an affordable model. His friend, Mark, also needed a lawn mower. His yard was much larger, so he went to Johnny and said "Johnny, we both need a lawn mower.
Why don't we go shopping and get the lawn mower together." Johnny and Mark found a suitable lawn mower for $10,000. Johnny actually talked to the salesmen. And the salesmen agreed to extend Johnny a loan to purchase the lawn mower if Mark would orally contract to stand as a surety for Johnny if the payments were not made on time.
For two months, Mark uses the lawn mower more than anyone. But then Johnny fails to make payments and the salesman sues Mark under the oral contract. What will be the likely disposition of the case?
2. Contractual Remedies
Haply Inc. contracts with Barksdale LLC to have an engine repaired. After much negotiation, the parties agree that the pump will be repaired and reinstalled at Haply's facilities in 5 days. Haply plans on losing $40,000 a day for each day the engine is not delivered after the five-day window (this is the cost for a replacement engine).
Haply talks Barksdale's representatives that if the engine is not repaired on time that bad press will cause Haply to lose a client's business totaling $3,000,000. Barksdale does not complete the contract until day 7.
It cost Haply $500 to secure the delivery of a replacement engine. The actual rental of the replacement engine cost $40,000 a day. And Haply lost the business of a client totaling $3,000,000. Haply sues Barksdale for incidental, consequential and compensatory damages.
The court finds that there is a breach of contract. What are the consequential, incidental, and compensatory damages that Barksdale is liable for in this case? Be sure to define each of those terms.
3. Contractual Remedies
Haply Inc. contracts with Barksdale LLC to have an engine repaired. After much negotiation, the parties agree that the pump will be repaired and reinstalled at Haply's facilities in 5 days. Haply plans on losing $40,000 a day for each day the engine is not delivered after the five-day window (this is the cost for a replacement engine).
Haply talks Barksdale's representatives that if the engine is not repaired on time that bad press will cause Haply to lose a client's business totaling $3,000,000. Barksdale does not complete the contract until day 7.
It cost Haply $500 to secure the delivery of a replacement engine. The actual rental of the replacement engine cost $40,000 a day. And Haply lost the business of a client totaling $3,000,000. Haply sues Barksdale for incidental, consequential and compensatory damages.
The court finds that there is a breach of contract. What are the consequential, incidental, and compensatory damages that Barksdale is liable for in this case? Be sure to define each of those terms.