Firwood manufacturing Co had a contract to sell General Tire 55 Model 1225 postc
ID: 2600955 • Letter: F
Question
Firwood manufacturing Co had a contract to sell General Tire 55 Model 1225 postcure inflators. (PCIs) PCIs are $30,000 machines used by General Tire in its manugacturing process. The contract was entered into in 1989 and by April 1990 General Tire had purchased 22 PCIs from Firwood. However, General Tire then Closed its Barrie Michigan Plant. Firwood reminded General Tire that it still had the obligation to purchase the 33 remaining units. General Tire Communicated to Firwood that it would not be purchasing the remaining ones. Firwood then was able over a period of three years to sell the rmaining PCIs - some as units - and others broken down and sold for their parts. The sale of the remaining units by Firwood brought in $187, 513 less than the General Tire Contracted provided and Firwood filed suit to collect the difference plus interest. Can Firwood recover? Why or why not? What rules of law apply? Use IRAC.
Answer using IRAC: Issue, Rule, Analysis, and Conclusion
Explanation / Answer
Contracts Act is applicable in this case.
The victim can file for damages from the the defendant.
Firewood can recover the loss amount, but interest on that loss to be recovered or not can only be decided upon by the court of law.
Issue: damages due to breach of contract.
Rule: Contracts Act, breach of contract.
Analysis: Firewood suffered loss of 187513 $ and that will be recovered upon filing for the damages.
Conclusion : loss could be recovered, interest is subject to the decision of court.
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.