This problem involves an actual case. I want you to analyze this case using the principles you have learned so far from Business Law. Describe how (or if) the contracts were formed and the terms of the contracts. What were the parties expectation interests? What is your legal analysis and what would be the conclusion? DO NOT simply say "So and so is entitled to compensatory damages". No credit will be given for "It would be the right thing" or anything else along those lines. I am not interested in your personal opinion or what you believe would be morally or ethically correct. Your answer should be based on the law and the information and principles you've learned in Chapter 18, and the preceding chapters, not morals or ethics. This is a real case and I want you to come up with real solutions.

If you determine that one party should win, I want a full explanation as to why. I also want a full explanation as to why the other party should not win. I am not concerned so much with whether or not you come up with the right conclusion, but with your argument and explanation.

Problems and Problem Cases 1. Diamond Aircraft announced that it would build a single-engine light jet aircraft referred to as the D-JET," noting that it would select a powerplant and other equipment for the plane in the future and identifying a "projected price of under $1 million. In April 2003, Diamond issued a press release in which it projected that the D-JET's first flight would be scheduled in 2004, with initial deliveries to customers in 2006. In 2004, Barnes signed a "Reservation Agreement" with Diamond. The agreement made it clear that there was no existing aircraft to consider for purchase yet, and there were no specifications of the aircraft provided except for general descriptions such as "premium interior" and "glass cockpit." It listed the "Manufacturer's Suggested" price of $850,000 and provided that Barnes would be required to pay a 10 percent deposit within 30 days of JAA IFR certification in order to "keep the order position secured. The parties also agreed to limit their liability to the return or forfeiture of the deposit in the event of breach. Barnes paid a deposit of $20,000 to reserve a place in line to purchase a D-JET, and Diamond assigned her the 52nd North American delivery position. Later, Diamond reconfigured the D-JET entirely and announced the new configuration and new pricing in 2006. It sent Barnes and other deposit holders a letter explaining that upgrades in the aircraft would cause it to be priced at $1.38 million. It gave deposit holders the choice of maintaining their delivery positions for a D-JET priced at $1.38 million or recovering their deposits and relinquishing their delivery positions. Barnes filed suit against Diamond, alleging breach of contract and seeking specific performance or money damages. Will she win