Contract to sell a marine engine for a custom refurbishment of an antique (1950) powerboat. You contract with a seller to buy a refurbished 1950 marine engine (cannot be found anywhere else) for $30,000. In the written contract you put a clause that says, “In the event of breach by the seller, the buyer will then be forced to breach a contract with the party-buyer of the goods and services required to restore/refurbish the antique boat. The profit lost on this sequential contract would have been $45,000 and may be recovered in a breach of contract lawsuit from the seller of the marine engine.” In addition, in case of litigation, the prevailing party is entitled to recover reasonable attorney fees and related court costs. Assume this amount would be $50,000. What amount of damages would a court award, and what are they called?
Contract with builder for an addition to your home. Contract price $100,000. What is the amount of damages would a court award (and why) if a contract term stipulates that the addition must be finished on or before April 13, 2017, because you are having a big party on April 17th to celebrate the end of tax season with 175 of your closest friends and tax clients and it is difficult to estimate the actual damages now that will be incurred? Why?
1-Paragraph states for each day late after April 13th the builder will pay $1,000 up to 4 days?
2-Paragraph states for each day late after April 13th the builder will pay $10,000 up to 4 days?