Case Study: Contract Performance

Twin Creeks Entertainment signed a deal with U.S. JVC Corp. in which JVC would buy 60,000 feature-film videocassettes from Twin Creeks over a three-year period. JVC intended to distribute the cassettes nationwide. Relying on its deal with JVC, Twin Creeks signed an agreement with Paramount Pictures, agreeing to purchase a minimum of $600,000 worth of Paramount cassettes over a two-year period. JVC breached its deal with Twin Creeks and refused to accept the cassettes it had agreed upon. Twin Creeks sued and claimed, among other damages, the money is owed to Paramount. JVC moved to dismiss the claim based on the Paramount contract, on the ground that Twin Creeks, the seller of goods, was not entitled to such damages. Will JVC be successful in having the claim dismissed?

Hints to consider for your analysis:

If the court requires JVC to pay Twin Creeks the full amount of money it was obligated to pay under the contract, Twin Creeks will receive its________ interest.

What type of interest is the $600,000?

Does "specific performance" enter into consideration?

Does "consequential damages" enter into consideration?