Solution of Problems - Math Problem Example

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The paper contains math problems and their solution. The problems concern the economic issues in farming. The author states that the optimal solution is to provide the farmer with $1200. Bargaining is not possible since the farmer is subjected to damage, which is not related to the railroad. …
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Solution of Math Problems
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Expectation damages: In this case A would have gained $200,000 - $160,000 = 40000 For the first 3 months, A would have earned on average:
3/12 x 60000 = 15000
A would have gained $40000 had the contract not been repudiated. Yes, A would have gained $40000 under the contract, but A would have lost an income of $15000 that it no longer has to lose now. This means that it will take $25000 to bring A from where it now stands to where it would be if the contract hadn’t been repudiated.
Reliance damages
No reliance damage in this case since A did not rely materially on upon.
Expectation damages:
A would have gained $80000 ($200,000 - $120,000)
In this case, A relied materially on the tune of $80,000 (half of labor and materials), and his expected profit was actually $80000.
Further, A would have lost an income of $15000 that it no longer has to lose now.
Hence the court would award = $80,000 + $80000 - $15000 = 145000
Reliance damages:
Amount spent on materially relying – mitigated losses
$80000 - $15000 = $65000
Expectation damages
$40,000 - $20,000 = $20000
Had the contract not been breached, A would have gained a monument worth $10,000
As it stands, now A has to spend an additional $6,000 for another contractor to take on the work. Consequently, it would now take $4000 to bring A from where he stands to where he would have been had B not abandoned the work.
Expectation damage
Considering B had not breached the contract, A would have gained $1,000,000 worth the value of the land. As it stands, A has to pay nothing for drilling the well. But since nothing has happened and no money has been spent by A on making the dream of $1,000,000 alive, the court awards nothing to A.   Read More
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