Question: ABC Ltd. was in a contract to supply 1,000 widgets @$1.00 each to XYZ Ltd by a specified date. Due to a mechanical failure at

ABC Ltd. was in a contract to supply 1,000 widgets @$1.00 each to XYZ Ltd by a specified date. Due to a mechanical failure at its factory, ABC Ltd. cannot fill the order on time and has advised XYZ Ltd. to expect delivery to be two months late. XYZ Ltd. planned to use the widgets as components in a machine that it had already contracted to sell for an anticipated profit of $30 000. It cannot wait the two months without jeopardizing that sale. What is XYZ Ltd. obligated to do now? What if the only other source for replacement widgets is from a manufacturer who is proposing to sell at an exorbitant sum? What other costs can XYZ Ltd. seek to recover?

Step by Step Solution

★★★★★

3.55 Rating (169 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

XYZ has a duty to mitigate in face of ABCs breach of contract It must take reasonable steps to mitig... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Document Format (1 attachment)

690-L-B-L-C (2020).docx

120 KBs Word File

Students Have Also Explored These Related Business Law Questions!

Davis Kitchen Supply produces stoves for commercial kitchens. The costs to manufacture and market the stoves at the companys normal volume of 6,000 units per month are shown in the following table....

Brown Machine Company, a division of Kvaerner U.S., Inc., entered into a contract to supply a machine and tools to Hakim Plast, a food containerproducing company based in Cairo, Egypt, to enable...

Kaminsky Ltd manufactures belts and braces. The firm is organized into five departments. These are belt-making, braces making, and three service departments (maintenance, warehousing and...

4. Abcrom Ltd. was in a contract to supply 1000 widgets @$1.00 each to Fraze Ltd. by a specified date. Due to a mechanical failure at its factory, Abcrom Ltd. cannot fill the order on time and has...

1 (7 marks) ABC Ltd has the following land and buildings in its financial statements as at 30 June 2022: Residential land, at cost Factory land, at valuation 2020 Buildings, at valuation 2020...

4) Parktown Realty Inc developed an upscale condominium complex. On October 1, Miranda Wine signed an offer to purchase one of the units. Part of that document said, "This offer is irrevocable by the...

Answer All the questions (a) The International Accounting Standards Board's framework for the presentation of financial statements prescribes for recognition of assets only when two conditions are...

FIN201 Final Exam Sample MULTIPLE CHOICE. 1. Why will banks permit the use of an overdraft as suitable for funding the purchase of inventory that will quickly be converted into cash? A. To assist a...

Evaluate the potential gains and losses for forwards,future,call options,put options and swaps. Outline and describe the different risks that each type of derivative contract faces. Describe...

answer all (a) M 8.3 Raw Materials Decision - Local Purchase vs Other Purchase X Ltd has two factories, one at Lucknow and another at Pune producing 7,200 Tonnes and 10,800 Tonnes of a product...

Create a risk matrix for this project: Explain your reasoning for your placement of the events Weather problems and Fundingdelays. Event Cost ($000) Probability Equipment breakdown Vendor is late...

We have an empty cardboard box of dimensions breadth = 4 m, length = 5 m, and height = 6 m. An ant and a fly are sitting at one of the 8 corners inside the box and wish to go for a tiny cube of sugar...

Which of the following would increase your companies need for external financing LLC equal dividend payout ratio collection. Sales growth, profit margin.

E2-35. Applying the Accounting Equation to Determine Missing Data For each of the four separate situations / through 4 below, compute the unknown amounts refer- enced by the letters a through d...

Under what doctrine discussed in the chapter might John seek to recover the profits he lost when he declined to do repair work for one week? John operates a motorcycle repair shop from his home but...

Some jurisdictions maintain that it would be irrational to apply the doctrine of promissory estoppel to a promise of at-will employment, given that the employee could be fired after working for only...

If the nephew had not had a legal right to engage in the behavior that he agreed to forgo, would the result in this case have been different? Explain.

Points: 0 of 6 Save Assume that the sample is a simple random sample obtained from a normally distributed population of IQ scores of statistics professors. Use the table below to find the minimum...

Please complete questions and show work with problems please and thank you in advance 1. Determine whether the data described are continuous, discrete, nominal or ordinal: a) (2 points) Brands of...

First Simple Bank pays 9.2 percent simple interest on its investment accounts. First Complex Bank pays interest on its accounts compounded annually. Required: What rate should the bank set if it...