Berkley Corp. wanted to buy 1,000 customized umbrellas imprinted with their logo to use for promotional purposes.

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Berkley Corp. wanted to buy 1,000 customized umbrellas imprinted with their logo to use for promotional purposes. It planned to use 250 of the umbrellas for an event scheduled for early February 2012 and to keep the remainder for future distribution to employees and customers. Berkley explained its needs to Classic Carts, Inc. (CC), which provided Berkeley with a sample umbrella in late August 2011. After examining the sample and receiving assurances about timely delivery, Berkley placed the order on September 29, 2011. When CC received the order, it asked for payment in full of \($61,204.43.\) Berkley complied. Due to financial difficulties, CC experienced delays and tried to source the umbrellas from the cheapest provider, to look for the cheapest transportation, and to cut out the middle person who would have helped with the logistics. Meanwhile, CC used the money received from Berkley to pay for “personal financial needs, including payments of personal obligations and payments to family members.” CC kept delaying the delivery date. When it became clear the umbrellas would not be delivered before the event, Berkley attempted to cancel the order. CC refused to accept the cancellation and refused to return the \($61,204.43\) When the umbrellas arrived a few months later from China, CC attempted to deliver them. Berkley filed a lawsuit for breach of contract. Does anticipatory repudiation apply here? Does Berkley have to take delivery of all or some of the umbrellas? Did CC breach the contract? If so, was it a material breach? How much should be awarded in damages?

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The Legal And Ethical Environment Of Business

ISBN: 9781454893028

2nd Edition

Authors: Gerald R. Ferrera, Mystica M. Alexander, William P. Wiggins, Cheryl Kirschner, Jonathan J. Darrow

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