In preparation of the Holiday season, Kris Kringles Christmas cookies orders 100 pounds of a special ingredient
Question:
In preparation of the Holiday season, Kris Kringle’s Christmas cookies orders 100 pounds of a special ingredient from X corporation at a price of $10 per pound to be paid upon receipt. This ingredient is essential to a certain kind of cookie for which Kringle sells on average 2000 cookies during the Holiday season at a profit of $1 per cookie.
a) If X Corp never supplies the secret ingredient and Kringle has to buy the ingredient elsewhere at $15 per pound what type of damages may Kringle sue for and what would be the appropriate amount?
b) If X Corp never supplies the secret ingredient and Kringle can not locate the ingredient elsewhere what type of damages may Kringle sue for and what would be the appropriate amount?
A famous actress was signed to film a romantic comedy set in Los Angeles for 1 million dollars. The picture was cancelled and she sued because the contract was guaranteed . The film studio responded that she was not entitled to anything because they offered her the opportunity to perform in a western to be shot in Australia for the same money and she refused to take it.
a) What is the legal concept called requiring a non-breaching party to reduce any damages suffered from the breach?
b) Was the film studio correct in its assertion that the actress failed to do this? Why or why not?
Intermediate Accounting
ISBN: 978-0176509736
10th Canadian Edition, Volume 1
Authors: Donald Kieso, Jerry Weygandt, Terry Warfield, Nicola Young,