Business Law dis #5 - Essay Example

Business Law Question Seller) Tom T-shirts v. Trusty Car Detail (Buyer) Facts: There are special circumstances, in a voidable contract where both parties can render the contract void at any time. It is an oral contract, enforceable even when there is no written memorandum.Issue: What is the amount of damages to which the seller is entitled for the breach of contract? Explanation: Tom began working on them before I was in a position to cancel the order, thereby the T-shirts cannot be sold elsewhere.

The contract between Tom and was binding.Conclusion: In my opinion, I would be required by the court to pay for all the T-shirts even when I rendered the contract void when I called Tom to cancel the T-shirt order.Discussion Question 2: Performance and Discharge (pg.401-402)(Plaintiff) Power Engineering v. Krug International (Defendant)Facts: Under common law, the performance of a contract may be impossible for one party in contract renders it void based unavoidable circumstances.Issue: Is the plaintiff entitled for damages resulting from the defendant’s breach of contract?

Explanation: Krug international had a contract with Power Engineering. Krug contracted Power Engineering to build a specialized gearbox without telling Power that the gearbox would be sold. Krug later notified Power that the gearbox was no longer necessary when the Gulf War broke. Rule: Power Engineering cannot recover from Krug International in respect to the work done as part of quantum meruit. The contract shows that Krug had foreseen the damages. The liabilities accrued by the Power are still enforceable.

Discussion Question 3: Remedies (pg. 409)Bi-Economy Market, Inc. v. Harleysville Ins. CoFacts: Bi-Economy Market was insured by Harleysville Insurance. The contract was made on basis that the insurer would provide replacement for damaged buildings and inventory and 1 year business interruption insurance. Issue: What is the amount of damages entitled to Bi-Economy for damages?Explanation: The circumstances of the damages to compensate were known to both parties at the time they made the contract.

Rule: The circumstances were known to both parties; therefore Bi-Economy is entitled to a fair and reasonable payment for the damages resulting from Harleysville’s breach f contract and negligence.