FOR BUS LAW I

Certain that Al Gore would emerge victorious from the post-election chaos, Melvin's Decorations ordered 50,000 "President Al Gore" medallions from Medallions, Inc. on December 1, 2000 for $5 per medallion. Delivery was to be on January 10, 2001. By that date, the value of the medallions had fallen to $1 per medallion. Melvin's Decorations refused to accept the medallions because it was clear that George Bush would keep the presidency, and Medallions, Inc. sued for Melvin's breach. What can Medallions recover? (Assume that there was nothing wrong with the medallions and that Melvin's did breach the contract).

A.

Medallions' lost profit on the deal.

B.

The difference between the contract price and the market price.

C.

Either A or B.

D.

Neither A nor B.

Question

Makenna

Business

18 November, 07:18

FOR BUS LAW I

Certain that Al Gore would emerge victorious from the post-election chaos, Melvin's Decorations ordered 50,000 "President Al Gore" medallions from Medallions, Inc. on December 1, 2000 for $5 per medallion. Delivery was to be on January 10, 2001. By that date, the value of the medallions had fallen to $1 per medallion. Melvin's Decorations refused to accept the medallions because it was clear that George Bush would keep the presidency, and Medallions, Inc. sued for Melvin's breach. What can Medallions recover? (Assume that there was nothing wrong with the medallions and that Melvin's did breach the contract).

A.

Medallions' lost profit on the deal.

B.

The difference between the contract price and the market price.

C.

Either A or B.

D.

Neither A nor B.

+4

Answers (1)

Know the Answer?

Ethen Garcia · Answer 1

A. Medallions' lost profit on the deal.

Explanation:

Since Melvin's Decorations breached the contract they had with Medallions, the non breaching party is entitled to sue for compensatory monetary damages. Courts will generally assign compensatory damages that cover the losses incurred due to the contract breach, i. e. the amount of money that medallion would have made as a profit if Melvin's decoration had purchased and paid for the medallions.