DeJohnette Developments was in the process of building a recording studio. It agreed to purchase about $5

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DeJohnette Developments was in the process of building a recording studio. It agreed to purchase about $5 000 000 worth of sound equipment from Peacock Electronics Inc. Jarrett Koln, who custom builds sound equipment, heard that DeJohnette was planning a new recording studio. Koln did not know that DeJohnette had already entered into a contract with Peacock. He sent a letter to DeJohnette that said:

You should not, under any circumstances, buy equipment from Peacock. Although that company has been around for years, the quality of its merchandise is vastly inferior compared to mine.

DeJohnette knew that Koln was correct. Recent studies had shown that Peacock's equipment was second-rate. DeJohnette nevertheless honoured its contract with Peacock and refused to buy from Koln. Peacock, however, is upset that Koln jeopardized its agreement with DeJohnette. Can Peacock successfully sue Koln for inducing breach of contract? Provide several reasons for your answer.

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Managing the Law The Legal Aspects of Doing Business

ISBN: 978-0133847154

5th edition

Authors: Mitchell McInnes, Ian R. Kerr, J. Anthony VanDuzer

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