Problem
Contracts Hypo:
I. Nicki and Cardi entered into a contract to sell in which Nicki agreed to deliver 200 cogs of a specified metal content to Cardi within thirty days at a price of $40 per cog. Due to an interruption in the supply of a required metal, which greatly increased the metal's price but did not eliminate the supply, Nicki failed to deliver the cogs to Cardi within the thirty-day period. Shortly after the thirty-day period expired, Cardi purchased the cogs from another supplier at the price of $100 per cog, which exceeded the $80 per cog price for which cogs were then readily available in the market. As a result of Nicki's failure to perform, Cardi filed suit against Nicki, seeking to recover damages from two lost sales to Cardi's customers, the additional cost Cardi incurred in purchasing the cogs from another supplier following Nicki's failure to deliver, non-pecuniary losses including mental anguish, and attorney's fees incurred in filing the suit against Nicki. Of the two lost sales, one involved an existing customer with monthly purchase requirements that Cardi customarily fulfilled but was unable to fulfill due to Nicki's failure to deliver the cogs. The other lost sale could not reasonably have been predicted. Each of the two lost sales had a verifiable loss of profit, based on Cardi's costs.
i. A. Is Cardi entitled to collect damages for breach of contract, and if so, what damages is she entitled to collect under the facts of the problem? Discuss.
ii. A. What defenses, if any, does Nicki have to Cardi's claims for damages? Discuss.
II. Meek entered into an agreement with Kenneth in which Kenneth would perform engineering consulting services for Meek in connection with Meek's manufacturing business. Kenneth intentionally provided faulty advice that resulted in various losses to Meek, including two lost sales and nonpecuniary damages. Of the two lost sales, one involved an existing customer with monthly purchase requirements that Meek customarily fulfilled, and the other involved a sale that could not have reasonably been predicted. Each lost sale had a verifiable loss of profit, based on Meek's costs. Upon learning of Kenneth's action, Meek took immediate steps to rectify the error and to lessen the resulting damage from Kenneth's actions.
i. What damages, if any, should Meek be entitled to recover against Kenneth? Discuss.