Business Law Remedies Genix, Inc., Has Contracted

Business Law

Remedies

Genix, Inc., has contracted to sell Larson five hundred washing machines of a certain model and list price. Genix is to ship the goods on or before December 1. Genix produces one thousand washing machines of this model but has not yet prepared Larson's shipment. On November 1, Larson repudiates the contract. Discuss the remedies available to Genix in this situation.

Facts

Larson breech the contract

The remedy to the manufacture for the breach of contract

There are several remedies that are available for a breach of contract that attempt to provide a remedy for the damage incurred by one party not fulfilling the terms of the agreement. In this case, since the washing machines were already produced and there was still time to ship them, the cost will have to account for the damages that it will incur by not being able to ship the 500 units. This could include expenses such as storing the units, having more expenses in regard to trying to market the units to other customers, or any other expenses that the company actually incurs. If the company could not resell the lot of washing machines, it could also ask that the other party be actually forced to purchase them or at least pay the company a reasonable profit plus the price it would cost to dispose of them.

Conclusion

The judge will award punitive damages based on whatever they perceive the consequential damages to be for the manufacture.

14-3

Moore contracted in writing to sell her 2002 Ford Taurus to Hammer for $8,500. Moore agreed to deliver the car on Wednesday, and Hammer promised to pay the $8,500 on the following Friday. On Tuesday, Hammer informed Moore that he would not be buying the car after all. By Friday, Hammer had changed his mind again and tendered $8,500 to Moore. Although Moore had not sold the car to another party, she had refused the tender and to deliver. Hammer claimed that more had breached their contract. Moore contended that Hammer's repudiation released her from her duty to perform under contract. Who is correct and why?

Facts

Moore fulfilled the verbal contract. Hammer fulfilled the written contract though he entered a verbal statement opposing the contract before it was completed.

Issues

This transaction and its potential failure are due to the different interpretations of written contracts and verbal contracts. Generally more weight is given to written contracts as opposed to verbal ones.