Breach of Contract and Remedies

Question 1

What can Marge not recover damages for if (1) Krusty contracted with Fat Tony to build log cabins for Kamp Krusty, and Marge to just paint themed murals inside the cabins, (2) Fat Tony rescinded after realizing the soil would make the cost significantly higher than he anticipated, (3) Marge already paid for (a) paint and brushes, (b) van to transport equipment due to the remoteness of Kamp Krusty, and (c) hanging plaques from which she drew inspiration from each planned cabin?

Answer 1

Hanging plaques - Marge was entitled to contract minus cost of performance for expectation damages, as well as the cost of paint and brushes and utility van in reliance b/c those were foreseeable expenses - however, since Marge was not contracted to put the plaques up, she drew inspiration from the rooms themselves, the plaques would have been considered a foreseeable expense

Question 2

Why is Apu able to sell his grocery bag manufacturer for breach of contract if (1) Apu’s always copmlied w/ terms of payment, (2) false rumor spread about Apu not paying food suppliers, (3) manufacturer reasonably worried about Apu’s ability to pay, (4) 45d before next shipment, manufacturer orally asked Apu for reasonable assurances, (5) Apu never gave assurances?

Answer 2

Manufacturer messed up b/c under the UCC (these are shopping bags, and hence goods), adequate assurances requests need to be in writing

Question 3

Can Costington’s recover the contract price of the gag couch from the Simpsons if (1) the Simpsons paid $2.5K check to Costington’s for their unique, one of a kind, gag couch, (2) Costington’s was going to deliver the couch free to Simpsons the next day, (3) the couch was destroyed en route in a traffic accident at no fault of Costington’s, (4) Costington’s offered to deliver a replacement couch the next day, (5) the Simpsons stopped payment on their check b/c they don’t want another couch?

Answer 3

No b/c the Simspons specifically selected the couch they wanted for their opening gag - since it was dealing with specific identified goods, when destroyed before risk of loss shifted to the Simpsons, the couch getting destroyed frees up both Costington’s and the Simpsons from performance - the couch was the exact couch they have been using on their set for couch gags for 3 decades - Costington is a department store that regularly sells furniture so risk passes to the Simpsons upon taking physical possession - since the Simpsons never got the couch, they don’t bear any of the risk of loss