Question: BuildCo needs protective masks for its construction workers, to protect them from breathing asbestos as they work. BuildCo enters a contract with Acme Corp, in
BuildCo needs protective masks for its construction workers, to protect them from breathing asbestos as they work. BuildCo enters a contract with Acme Corp, in which it agrees to pay Acme $100,000 for 5,000 protective masks. The contract also states, The masks are to be N95 masks, meaning they that they filter out asbestos particles at the rate of 95%.
Acme delivers 5,000 masks, but tests on them show they filter out asbestos particles at the rate of 85%. BuildCo refuses to pay Acme, returns the masks to it, and then pays Masko Co. $150,000 for 5000 N95 masks.
Acme sues BuildCo for breach of contract, demanding payment of $100,000. BuildCo responds by claiming that Acme breached the contract and therefore owes it damages.
Analyze what amount of damages, if any, should be awarded, to Acme or to BuildCo.
Assume the contract is valid--do not discuss the law regarding the elements of a valid contract. Only discuss the breach of contract damages analysis.
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