Gertx Electric signed a contract with Ron Corp. for Ron Corp. to advertise their new air fryer at a spring exhibition. Ron Corp advertised Blext Electronic's air fryer at the exhibition because Blext Electronics offered Ron Corp. a deal they could not refuse. Ron Corp. believes that terminating the contract and informing Gertx Electric 7 days in advance of the exhibition was enough time for Gertx Electric to make advertising arrangements with another company. ... At this point, Ron Corp is appealing a lower court ruling that allows Gertx Electric to recover expenses related to the advertising agreement, before and after the contract between the two was terminated. In essence, Ron Corp. is challenging the scope of the expenses.

What are the economic challenges for judges ruling in this case and cases of a similar nature? Please explain, using contracts, efficiency and social welfare as the basis for your position.