TQ 4.1: If a buyer breaches a sales contract and the price goes down, what are the seller’s options? If the seller breaches and the price goes up, what are the buyer’s options?
TQ 4.2: What is a liquidated damage provision? What test did the court in Bachour v. Mason use to determine whether the $75,000 liquidated damage was enforceable? Why did the provision fail that test?
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TQ 4.3: What must the non-breaching party do to satisfy the requirement of mitigating damages? In State v. Ernst & Young, why did the court find that the state had not met this duty?
TQ 4.4: In Morgan Stanley v. Seven Circle Gaming (which you read for week 3), what actions did defendant contend the plaintiffs should have taken to mitigate damages? What did the court hold on the issue of mitigation?
TQ 4.5: You agree to sell your used car to a neighbor for a price of $2,000, but then you have a change of heart. How likely is it that a court would force you to go through with the transaction, as opposed to simply paying your neighbor the difference between the contract price and the price of a comparable used car? Would your answer be different if the car was a vintage used car worth $50,000?
PLEASE USE WEBSITE BELOW OR OTHER WEBSITE WITH CASES :
• Bachour v. Mason
• State v. Ernst & Young, L.L.P
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