The K Ticket Agency offers opera tickets for sale at a price of $40 per ticket. Jessica orders 5 tickets, and promises to pay when she picks up the tickets on the day of the performance. On the basis of this order, K purchases 5 tickets at the wholesale price of $25. If Jessica had not ordered these tickets, K would have sold them to Frank at a price of $30 per ticket. . Close to the day of the performance, based on bad reviews, Jessica cancels her order. By this time the best price K can obtain for the tickets is $15.
a) Who is the promisor, and who is the promise, in the original contract between the K Ticket Agency and Jessica?
b) Explain the differences between the following three measures of damages for breach of contract: expectation damages, opportunity cost damages, and reliance damages.
c) Use the information above to illustrate the relative values of the three measures.