Problem.Dispute.Expectation measure
A. Breaches by suppliers
1. a. Following a response to her ad on the internet, a private party residing in Colorado contracts to sell her 1993 limited edition vintage purple Porsche with 40,000 miles on it to a buyer in California for $32,000, delivery and payment in one week at the seller's residence in Colorado. The buyer plans to fly to Colorado and drive the Porsche back to California. A day after making the contract, and before buyer purchases his airplane ticket, seller accepts a better offer ($35,000) from another buyer and calls the first buyer to tell him the bad news. After searching the internet on and off for a month, buyer finds another 1993 limited edition vintage Porsche advertised by a seller in Oregon for $35,000. This second Porsche is black (a color that buyer prefers over purple) and has 35,000 miles on it. If buyer purchases this Porsche he will fly to Oregon to pick it up and drive it back to California. An airplane ticket to Colorado would have cost $200 and an airplane ticket to Oregon would cost $100. Gasoline from Colorado would have cost $100 and gasoline from Oregon would cost $50. To what damages would buyer be entitled if he buys the Porsche in Oregon? U.C.C. 2-610, U.C.C. 2-711(1), U.C.C. 2-712, U.C.C. 2-715.
b. Suppose the seller of the Colorado Porsche does not get a better offer and does not repudiate the contract with buyer. Buyer shows up in Colorado and discovers that the Porsche is a 1992 Porsche with 50,000 miles on it. Buyer refuses to take or pay for the Porsche and flies home at a cost of $200. He then discovers the Oregon Porsche (same description, mileage, and price as in the preceding question). To what damages would buyer be entitled if he buys the Porsche in Oregon? U.C.C. 2-313, U.C.C. 2-721, U.C.C. 2-601, U.C.C. 2-711(1), U.C.C. 2-712, U.C.C. 2-715.
To what damages would buyer be entitled if buyer decides to forsake the search for the 1993 vintage edition Porsche and buy a new Porsche for $97,000? U.C.C. 2-711(1), U.C.C. 2-713, U.C.C. 2-715 .
c. Suppose the seller of the Colorado Porsche does not get a better offer and does not repudiate the contract with buyer. The car is in fact the 1993 Porsche described in the ad and its odometer shows 40,000 miles. Buyer shows up in Colorado, pays for the car, and drives it home. He is deliriously happy with the car. Upon inspection, his mechanic reports that the car is in superb condition and that the odometer has been rolled back from 60,000 miles. Buyer decides to keep the car but gives suitable and timely notice of breach to the seller pursuant to U.C.C 2-607(3). To what damages, if any, is buyer entitled? U.C.C. 2-714.
2. Consider the facts in Problem.Dispute.Soccer trainer. Assume that the soccer trainer and soccer club were bound by an implied-in-fact contract for a second year of coaching and training. Also assume that the soccer trainer, not the soccer club, breached the contract by telling the club at the end of August (i.e. just after the beginning) of the second year of her engagement that she would no longer train or coach the team. After a month of searching, the soccer club found another trainer who charged $60/game and $110/training session. To what damages would the soccer club be entitled? See R.2d Contracts 347.
3. Consider the facts in Problem.Dispute.Paint in the History Club. To what damages would Tisha be entitled if the History Club breached the contract by its painting of the kitchen on June 6? See R.2d Contracts 347, 353.
B. Breaches by recipients
1. a. Dr. Well decided to retire. She contracted to sell her medical equipment and office furniture for $35,000 to Dr. Zick, who was opening his medical practice in a suite of medical offices next door. Before picking up and paying for the equipment and furniture, Dr. Zick called off the deal. To what damages would Dr.Well be entitled if she were to sell the equipment and furniture to another doctor for $15,000 after storing it (at a cost of $250) and advertising it for sale for several months in the classified section of the city's general circulation newspaper (at a cost of $150)? U.C.C. 2-610, U.C.C. 2-703, U.C.C. 2-706, U.C.C. 2-708(1), U.C.C. 2-710, U.C.C. 1-106(1).
To what damages would she be entitled if, after the breach, instead of selling the equipment and furniture, Dr. Well donated it to a non-profit medical clinic that served low income patients, properly claiming the donation as a charitable contribution and thereby saving $10,000 in income taxes? U.C.C. 2-610, U.C.C. 2-703, U.C.C. 2-708(1), U.C.C. 2-710.
b. Office Supreme, an office furniture retailer, contracted to sell new furniture to Dr. Zhivago for his medical offices (chairs, sofas, tables, and lamps for the reception area, and desks, chairs, bookcases, and filing cabinets for his office and staff offices) at a cost of $34,500, plus a delivery charge of $500. Office Supreme had previously acquired these items from various manufacturers at a cost of $31,000, which included the cost of transportation from those manufacturers to Office Supreme's distribution center. Prior to delivery to Dr. Zhivago, Dr. Zhivago cancelled his order. Office Supreme held the furniture in its distribution center for a month and thereafter shipped individual pieces to various of its showrooms around the state at a cost of $300. To what damages would Office Supreme be entitled if it sold all of the items to different individual customers over the period of the next year for a total of $34,000? Would your answers differ if Dr. Zhivago rejected the furniture the day after delivery because he didn't like the way it looked? U.C.C. 2-703, U.C.C. 2-708(2), U.C.C. 2-710. To what damages would Office Supreme be entitled if it used all of the items for display only for a period of two years and then sold them to a used furniture outlet for $10,000?
2. Consider the facts in Problem.Dispute.Soccer trainer. Assume that the soccer trainer and soccer club were bound by an implied-in-fact contract for a second year of coaching and training. To what damages would the soccer trainer be entitled if the soccer club breached the contract at the time and in the manner stated in the problem and the soccer trainer soon thereafter procured comparable work for another soccer club at the same rates? Would your answer differ if the soccer trainer regularly trained several teams at once and, at the time of the breach, was training fewer teams than she ordinarily trained? See R.2d Contracts 347, including Comment f.
3. Consider the contract in Problem.Dispute.Paint in the History Club. To what damages would the History Club be entitled if Tisha repudiated the contract with the Los Robles History Club prior to the date of the graduation party because she found and rented another facility that she liked better? Would it matter if the History Club were able to rent the facility to someone else for the time originally reserved by Tisha? See R.2d Contracts 347, including Comment f.
4. To what damages would the City of Ecoville be entitled in Problem.Dispute.Ecoville garbage collection if Mother Earth's failure to assist elderly residents and delay in picking up trash in the recently developed subdivisions were a breach of contract? To what damages would the City of Ecoville be entitled if those breaches were material breaches leading the City to cancel the contract with Mother Earth and engage another garbage collection firm? To what damages would Mother Earth be entitled if its breaches were not material and the City cancelled the contract with Mother Earth and engaged another garbage collection firm? See R.2d Contracts 347, including Comment f.