1. Please define liquidated damages?
2. What does it mean to “Mitigate Damages?”
3. Ellen contracts to buy six cases of vintage Fertile Valley wine from Grapes & Vines Winery for $1,200. The contract states that delivery is to be made at Ellen’s residence "on or before May 1, to be used for daughter's wedding reception on May 2." On May 1, Grapes & Vines’s delivery van is involved in an accident, no wine is delivered that day, and no one from Grapes & Vines tells Ellen. On the morning of May 2, Ellen buys the wine from Happy Hill Winery. That afternoon, just before the reception, Grapes & Vines tenders delivery of the wine at Ellen’s residence. She refuses tender\delivery. Grapes & Vines sues her for breach of contract. How is the court most likely to rule?
4. National Drilling Company ships its only pump to American Hydraulics Corporation, the manufacturer, for repair. National hires Overland Transport, Inc., to take the pump to American Hydraulics and to return it to National as soon as the repair is complete. National expects to be without the pump for five days and to lose profits of $5,000 due to the decision by National to suspend operations without the pump. Overland does not know about National’s decision to suspend operations. Due to a mix up with Overland, the pump is not returned by the end of the fifth day. Overland delays five more days and finally returns the pump six days after the pump had been repaired. Not wanting to sustain additional losses, National rents a pump at a cost of $100 per day. National files a suit against Overland seeking compensatory, consequential, and punitive damages. Will National recover?