Question

In a telephone conversation with a sales representative of a linen company, the manager of a hotel ordered $1,000 worth of sheets. Following the conversation, the manager wrote a memo to the file documenting the agreement, initialed it, and sent a copy to the sales representative. One of the linen company’s competitors learned of this contract and contacted the hotel to tell them that the sheets were poorly manufactured and that they should stop buying from the linen company and buy everything from the competitor. The hotel then cancels the contract and starts buying from the competitor.

The linen company’s sheets are not poorly manufactured. The linen company can sue both the competitor and the hotel for losses suffered, one for a tort and one for breach of contract, but the linen company is not allowed to recover twice for the same harm.

What is the tort that the linen company can sue for and who is the defendant?

Who should they sue for the breach of contract claim?

What damages would be recoverable from each defendant so that it would not be recovering the same damages twice?

Does the Statute of Frauds create a defense to the lawsuit against the hotel?

Why or why not?

Its a law question

Answer 1

The linen company can sue the hotel and its competitors for the Tortious Interference and breach of contract. In the case of Tortious Interference, the competitor of the company will be the defendant while in case of breach of contract, the hotel will be the defendant

Answer= It is the hotel that broke the agreement for buying the sheet so the case for the breach of contract has to be filed against the hotel

Answer= In the case of a hotel, the linen company can look for the damages caused by the breach of contract that is worth $1000, on the other hand the competitors can be sued for the Tortious Interference and the judge can decide the compensation level in this regard.

Answer= The Statute of Frauds will definitely create the defense for the hotel. This is due to the fact that as per The Statute of Frauds, any contract of sales more than $500 has to be in written form. As the order that was placed by the hotel is worth $1000 so it will fall under the Statute of Frauds. The contract has to be signed by both the party that was not the case when it comes to the given case