Efficient Reliance and Damage Measures for Breach of Contract - Essay Example

CASE STUDY By Insert Presented to Location Due Homework Case 1. Summarize the relevant facts in chronological order. Professor Best entered into a contract with Engineering Books Incorporated, which stipulated that Best would supply with a manuscript entailing the research process she had conducted. Engineering Books Incorporated breached the contract when after Best supplied them with the manuscript they declined that the text, though publishable would not be published owing to the heavy costs involved. Best got enraged after knowing the hard work she put into it. Failing to publish the manuscript affected Professor Best’s chances for tenure in her department. Moreover, she lost her chance of receiving consultation fees as well as invitation to conferences, since she thought that the book would receive substantial loyalties. As such, Best incurred additional costs when she was forced look for other publishers, and made her to suffer a setback in her career. She also suffered a diminution of respect in the eyes of her colleagues based on the number of colleagues she asked to review her book. 2. Highlight all relevant legal rules, doctrines, laws, etc. According to contract law, mental illness as well as emotional suffering cannot be recovered in the event of contract breach. A recovery in the event of emotional disturbance prevails in case the breach caused bodily harm (Law Handbook 2014). Additionally, damages resulting from limited circumstances comprising of constitutional violations, intentional torts, or breach of good faith can be recovered (Cohen and McKendrick 2005). In the case of Best, the breach of contract by Engineering Books Incorporated did not create bodily harm, indicating that the contract was unrecoverable. 3. Analyze the case showing possible outcomes if taken to court The Plaintiff (Best) contracted with the defendant (Engineering Books Incorporated) for the publication of her manuscript, which the defendant confirmed was right for publication. After Best supplied the company with her manuscript, they told her it could not be published because of the heavy publication costs involved. In this case, Best suffered financial and emotional distress because she lost her chance of receiving consultation fees and invitation to conferences, which made her to suffer a setback in her career. She also suffered a diminution of respect in the eyes of her colleagues based on those she asked to review her work (Abele 2007). Best was forced to seek for third party publishers who confirmed that her work would be published if only she was willing to incur the costs involved. 4. What remedies might she seek? With respect to the damages that Best suffered, she should seek remedies pertaining to negligent misrepresentation and emotional distress. She should sue the company for failing to observe the publishing contract, making her to lose the respect of her friends, and setting her back on her career (Stanford University 2009). Therefore, she should seek for remedies pertaining to financial damages that resulted when her career fell back, tarnished reputation, and emotional distress (Abele 2007). 5. What remedy or remedies do you believe a court would award her? A tortious contract breach prevails when; it is accompanied by a tort found in common law, such as conversion or fraud; means for breaching the contract are tortious involving undue coercion or deceit; one party breaches a contract intentionally while knowing that the breach will lead to severe mental anguish or personal hardships (Rogerson 2008). In the case of Engineering Books Incorporated, it was under contract with Professor Best to publish her manuscript if it had met the anticipated standards. Subsequently, it is true that the company breached the contract since it declined to publish her work even though it had met the anticipated standards (Stanford University 2009). The company failed to attempt to help Best with her work despite entering into an agreement with her. As such, the jury would find the company guilty for acting in a negligent manner towards Best for causing mental anguish and financial loss to her. Homework Case 2 1. Summarize the relevant facts in chronological order. Single and separate contracts determine the manner in which a contractor handles a particular task assigned to him or her. For a single contract, the main contractor handles all the tasks that are assigned to him. In the event of a separate contract, different bids are welcomed alongside the main contract. Additionally, fixed price contracts and cost plus contracts determine whether prices should be set or whether a contract should be based on the real costs or the rates agreed upon. In this case, for a contract to be effective, it should be single and based on cost pricing. Therefore, for the fraternity house damaged by fire, the cost of the work was based on fixed terms, and the contractor was responsible for handling all the work. The typed-in provision stipulated, “Estimated cost of the work is $300,000” and that the contractor would be reimbursed for the costs incurred necessarily to facilitate in proper work execution. 2. Highlight all relevant legal rules, doctrines, laws, etc. Courts look for evidence of intention on whether the parties involved in a contract agree on certain statements to be incorporated. The involved parties are bound by the set terms once they sign the document regardless of whether they read the terms of not. According to section 153.50 of the Revised Code, a contract may be awarded to the lowest responsive bidder or to a different successful bidder based on the agreed conditions of a bid (Rogerson 2008). These conditions are responsible for scheduling, coordinating, and administering the contracts. 3. Analyze the case showing possible outcomes if taken to court In case a breach of contract prevailed between fraternity house and the architect, the contract stipulates that the contractor would be reimbursed all costs incurred necessarily after executing project appropriately. Additionally, maximum cost would be adjusted to facilitate in executing the project according to the set plan. If the contractor breached the contract by failing to complete the task according to the set agreements, fraternity house can terminate the contract, since he would show that he has failed to honor his contractual obligations (Meehan 2014). 4. What sources would be used to determine whether the contractor has a legal right to recover for costs incurred that exceed $300,000? The contractor would have a legal right to recover for costs beyond $300,000 if he manages to complete the project successfully according to the stipulated terms. The contract between fraternity house and the contractor stipulates that maximum cost would be adjusted in case costs go beyond the anticipated ones. Additionally, contract law stipulates that parties involved in a contract should abide to the set agreements, as the court would follow this procedure while determining while determining damages (Meehan 2014). 5. What is likely to have been the intention of contractor? Of the fraternity? For the contractor, his intentions were to make sure that he completed work according to the specifications of fraternity house, and be reimbursed for any additional costs incurred. For the fraternity, expectations were that the contractor would honor the terms of the agreement and not exceed the set maximum cost while handling the project efficiently (Law Handbook 2014). Additionally, both the fraternity and the contractor anticipate that they will honor the agreed terms for the agreement to be productive. 6. What if the intentions were different and neither party knew or should have known of the other’s intention? In case the intentions of the two parties were different, conflicts of interests would prevail. For instance, the contractor would prefer to incur less cost for the project by failing to meet the expectations of the fraternity. For the fraternity, they would expect the contractor to incur less cost while delivering high quality work. This move would lead to disagreements between the two parties leading to termination of the contract. References Abele, JR 2007, Emotional Distress: Proving Damages, Lawyers & Judges Publishing Company, New York. Cohen, N & McKendrick, E 2005, Comparative Remedies for Breach of Contract, Hart Publishing, London. Law Handbook 2014, The terms of a contract viewed 20 October 2014, . Meehan, CL 2014, Fixed Price Vs. Cost Plus, viewed 20 October 2014, . Rogerson, WP 2008, Efficient reliance and damage measures for breach of contract, Law and Economics Program, Stanford. Stanford University, 2009. Erlich v. Menezes, viewed 20 October 2014, . Read More