Damages Problems - Practice

A.  Owner hires builder to construct a bulding for a total price of $200,000. The estimated total cost of construction is $180,000. The owner breaches by unjustifiably terminating the contract when the work is half completed. At the time of termination, the owner has paid the builder $70,000 for work done, and the builder has spent a total of $95,000 for labor and materials (some of which are incorporated in the partially completed building). After the breach, the builder is able to resell $10,000 of materials purchased for the project.

Calculate the damages in the problem, "Case 1," on pages 964-65 of your casebook. Use the GVK+LCB-ES-VR formula and then verify your answer using a verification table. When finished, review your answer HERE.

B.  Rose hires Fred under a 2 year employment contract for a salary of $50,000 per year, payable in installments at the end of each month. Six months after Fred starts work, Rose wrongfully discharges her. Fred looks for work for three months but is unable to find a job. Finally, Fred hires an employment agency, paying a one time fee of $1,000. Three months later, she obtains a job similar to the one from which she was fired paying $45,000 per year.

Calculate the damages in the problem, "Case 2," on page 965. Use the GVK+LCB-ES-VR formula and then verify your answer using a verification table. When finished, review your answer HERE.

C.  Grace ordered 100 bobsled helmets from Willie at $70.00 per, F.O.B. Willies’ warehouse (in Alabama). It will cost $ 2.00 per helmet to ship the helmets from Alabama to Atlanta. Willie shipped 20 helmets and then refused to ship any more. Grace partially covered by buying 65 helmets from Fritz at $85.00 per, F.O.B. Fritz’s warehouse (in Bavaria). It cost $ 450 to ship these helmets from Bavaria to Atlanta. Grace has refused to pay Willie anything (though she did pay the shipper for the shipment of the 20 helmets).

Assuming that Willie is liable to Grace for breach of contract, calculate her damages using the proper UCC formulas and then verify your answer using a verification table. When finished, review your answer HERE.

D.  Sid ordered 2,000 toilets from Nancy at $ 120 apiece for a total contract price of $240,000. Nancy agreed to pay the shipping charges of $ 1,800. Nancy delivered the toilets to Sid but Sid refused to accept them. Nancy shipped the toilets back to her warehouse at a cost of $ 1,200. In transit back to her warehouse, 50 toilets were destroyed when the truck driver got in a minor collision.

Nancy resold 1,500 of the toilets to Mick, F.O.B. seller’s warehouse, at a price of $110 apiece. She resold the other 450 toilets to John at $114, F.O.B. John’s warehouse (shipping cost = $ 1,300).

Assuming that Sid is liable for breach of contract, calculate the damages using the UCC formulas and then verify your answer using a verification table. When you are finished, check your answer HERE.