Mary Sue entered into an agreement to buy fifty computers from Alice for a total of $70,000. The price did not include $500 in freight and insurance and a $3,000 installation charge. Alice agreed to install the network for Mary Sue. Two days before delivery, Alice phoned and said she would not be able to deliver the computers and that she was going out of business. Mary Sue protested and said she needed the machines, as she had already sold her old network and had started removing it in anticipation of the new machines. Alice apologized but said there was nothing she could do for Mary Sue.
Mary Sue went out and purchased similar computers from Bill for $90,000. He charged her no freight but did add a $5,000 installation fee. In addition, Mary Sue paid Ruth $10,000 for emergency computer service so that Mary Sue could continue operations until the new machines were installed.
Mary Sue now sues Alice for breach of contact. Alice claims she is not liable, as she notified Mary Sue in advance and Mary Sue mitigated her losses with replacement machines. Please discuss the rights of the parties in this matter.
2007-04-02
05:51:23
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6 answers
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asked by
john j
1