Contractual Remedies
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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.
Your paper should be 1-2 pages in length
(double-spaced, with one inch margins all around). Be certain to explain and support your
answer.
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