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Solution of Problems - Math Problem Example

Summary
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. …

Extract of sample "Solution of Problems"

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
Consequently;
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
C.
Expectation damages
\$40,000 - \$20,000 = \$20000
D.
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.
E.
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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