Use the following facts to answer Questions 29 through 31 . Kate enters into a v
ID: 449512 • Letter: U
Question
Use the following facts to answer Questions 29 through 31.
Kate enters into a valid, written contract with Josh pursuant to which Josh agrees to transport Kate’s classic 1967 Cheverolet Camaro to an antique car auction in Michigan. Kate and Josh agree in the contract that Kate will pay Josh $3,000 for his service. The day that Josh is supposed to pick up the car for the trip to Michigan, his car-hauling truck breaks down, and he calls Kate to tell her he won’t be able to take the car to Michigan for the auction.
Assume for purposes of this question only that Kate doesn’t have time to find another company to transport the car to Michigan on time for the auction, so she misses the auction. She sues Josh for his breach of contract. Josh argues in court that he should be discharged from his obligations under his contract with Kate because the fact that his truck broke down made it impossible for him to perform under the contract. Will Josh prevail with his argument?
Yes, as long as Josh wasn’t at fault for the truck’s mechanical failure.
Yes, as long as the truck’s mechanical failure wasn’t reasonably foreseeable.
No, because while Josh can no longer transport the car to Michigan, it is not objectively impossible to transport the car to Michigan.
No, unless Kate informed Josh about any special circumstances that required the car to be delivered to Michigan on the delivery date described in the contract.
Assume for purposes of this question only that when Josh tells Kate that he won’t be able to take the car to Michigan for the auction, Kate immediately begins calling other car transporters to make alternative arrangements to get her car to Michigan. She calls every transportation company within a 150-mile radius of her home, and the only company who can deliver her car to Michigan in time for the auction is a company called Platinum Car Hauling Company, the most expensive car hauler in the industry. What’s more, since Kate gave Platinum such short notice, they will only agree to transport her car if she pays a late-notice premium. When all of the fees are added up, it will cost Kate $5,000 to have Platinum deliver her car to Michigan. Seeing no real choice in the matter, Kate signs a contract with Platinum to deliver her car, and Platinum delivers it without incident.
Kate sues Josh for breaching the delivery contract with her. Assuming Kate’s efforts to find alternative arrangements for transporting her car were reasonable, what remedy will Kate likely receive?
Specific performance of her contract with Josh.
Restitution in an amount equal to the reasonable cost of having the car transported, even if that amount is less than $5,000
Compensatory damages of $2,000.
Consequential damages of $2,000.
None of the above.
Assume for purposes of this question only that the facts described in Question 30 apply and Kate has sued Josh for breaching his contractual obligation to transport her car to Michigan. Assume further that in addition to the costs Kate incurred to have Platinum Car Hauling Company transport her car to Michigan, Josh’s breach also resulted in Kate having to forfeit a $1,500 deposit she made with a photographer in Michigan who was going to take pictures of the car for a write-up in Hot Rod Magazine. In her lawsuit, Kate asks the court to order Josh to pay her not only the additional costs she incurred by having to hire Platinum, but also her forfeited photography deposit.
What will Kate have to prove in order to recover the forfeited deposit?
At the time Josh and Kate entered into their contract, Josh knew about the photography deposit and knew that Kate would have to forfeit the deposit if Josh didn’t deliver the car to Michigan as promised.
That Josh failed to inquire about any special circumstances relating to the delivery contract, so he is responsible for all damages relating to the breach of the contract.
Nothing. The forfeited deposit was a reasonably foreseeable consequence of Josh’s failure to deliver the car to Michigan as promised.
None of the above.
a.Yes, as long as Josh wasn’t at fault for the truck’s mechanical failure.
b.Yes, as long as the truck’s mechanical failure wasn’t reasonably foreseeable.
c.No, because while Josh can no longer transport the car to Michigan, it is not objectively impossible to transport the car to Michigan.
d.No, unless Kate informed Josh about any special circumstances that required the car to be delivered to Michigan on the delivery date described in the contract.
Explanation / Answer
Q 29 .
c. No, because while Josh can no longer transport the car to Michigan, it is not objectively impossible to transport the car to Michigan.
It was Josh’s obligation to transport the car. If his truck had a mechanical failure, he could hire a truck from the market and perform his part of the contractual obligations. So his argument may not prevail.
Q 30.
c. Compensatory damages of $2,000.
As per contract, Kate will receive compensatory damages to the extent of loss (in form of incremental cost she had to bear) for Josh’s failure to perform his obligations
Q 31.
a. At the time Josh and Kate entered into their contract, Josh knew about the photography deposit and knew that Kate would have to forfeit the deposit if Josh didn’t deliver the car to Michigan as promised.
However, Josh's total liability will be limited to the value of the contract as per limitation of liability clause.
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.