On March 1, Shoshanah agreed to manufacture and sell a widget toMarshall for a total price of $50 000. He paid $20 000 immediately and promised to pay the remainder on June 15. The contract required Shoshanah to deliver the widget to Marshall on June 1. On April 15, Marshall spent $10 000 altering his production plant in a way that would accommodate the widget that he expected to receive from Shoshanah. On May 20, Shoshanah informed Marshall that she would not be able to deliver as promised. On June 1, the market value of a widget was $65 000. Marshall can acquire a similar widget for that amount, but he will have to once again spend $10 000 in renovations to his production plant to accommodate that substitute. (No two widgets are exactly alike and each one has unique requirements.) Is Marshall entitled to receive damages? If so, on what basis and in what amount? Which one should he choose?

Answer rating: 100% (QA)

Marshall may seek to recover the anticipated damages based on the contract breachs ... View the full answer