In: Economics
Sally enters into a contract with John to purchase John’s 2015 Volvo for $18,000. On the day that the contract is to be performed Sally tenders the $18,000 but John refuses to deliver the Volvo. Sally sues John for breach of contract.
Sally locates a Volvo identical to John’s. Sally purchases the identical Volvo for the price of #20,000. In addition the automobile was located 150 miles from where Sally and John resided. Sally pays Bill, a classmate, $150 to go to “pick up and deliver” the Volvo.
Discuss the amount of damages, if any, that Sally can recover. Identify the legal classification for each “type” of damage Sally receives.
Would the amount of damages change if Sally went herself to pick up the Volvo?
Sally entered into the contract with John to purchase a car for
$18000 but John refused to deliver the car on the execution
day.
The car similar to that was located 150 miles away and has been
bought by Sally for $20000 and also paid $150 for pick up and
deliver.
This is a clear case of breach of contract and Sally is entitled to
damages for the extra amount she paid for the same car.
In addition to that, she is also entitled to receive 'pick up and
deliver cost' and legal expenses incurred to seek the
damages.
She should also claim damages for psychological stress she has to
go through and interest on the payment she made to purchase the
car.
It is the case of breach of contract and although she has hired
her classmate to pick up and deliver the car, the cost would not
have been changed even she herself was there to pick up the
car.
She is entitled to additional damages for the time and cost
incurred for picking up that car which was 150 miles away from
where she has resided.