Tropical-to-go Ltd (Tropical) retails large plants and trees. Its long-term supplier, Green Trees Ltd (Green), failed to deliver a large order to Tropical, in breach of contract to do so. As a result, Tropical lost a major contract with a large property management company for commercial buildings throughout the city, including the supply and maintenance of plants. Tropical lost this contract because without the delivery from Green it could not supply the contracted-for plants to that property management company. Tropical estimates it has lost $25000 in revenue as a result.

a.  When Green failed to deliver, Tropical’s duty to mitigate was triggered. Describe mitigation and what it would require Tropical to do in this case. If Tropical fails to mitigate, how does that affect its damages claim against Green?

b. What is the measure of damages in a breach of contract action? Based on that measure, what can Tropical recover by way of loss of profit? You may assume for the purposes of this question that, acting reasonably, Tropical was unable to mitigate its loss. 

c.   Assume that the contract between Green and Tropical contained a clause as follows: “Green’s liability shall extend to all damages proximately caused by Green for breach of its contractual obligation(s) to Tropical but such liability shall in no event include loss of profit. ”Based on the Tercon case discussed earlier in this chapter, do you think the court will enforce the clause? Assuming the court will enforce the clause, how does this affect Tropical’s damage claim?