Explain and calculate tom expectation damages


Problem: On September 1, Tom enters into a contract with Jerry to purchase 100 bottles of milk for $3 a bottle. Pursuant to the contract terms, the milk shall be delivered September 5. On September 4, milk prices rise to $5 a bottle. As such, Jerry no longer wishes to sell milk to Tom for $3 a bottle. Jerry therefore refuses to provide Tom with the milk on September 5 and, consequently, breaches the contract. Explain and calculate Tom's expectation damages.

 

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