Fall 2023 150 Law - Homework 1010
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New York University *
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150
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Law
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Jan 9, 2024
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Business Law 150
Homework #10
1.
Dakota enters into a contract with Avery in which Dakota will renovate Avery’s house. They
enter into the contract on July 1 and the contract states that it is vital that the work be
completed by July 31. Dakota does an excellent job but doesn’t complete the job until August
14. Due to the delay Avery had to postpone a big party he was going to have in his house on
August 2. It cost Avery $25,000 to reschedule the party. Avery sues Dakota for damages. Will
Avery be successful? What if the contract just had the July 31 completion date but never
stated that it was vital and it was customary for these types of jobs to typically run 4-6 weeks
late? Would the result change?
Seeing that the contract explicitly states that the completion date is vital and Dakota fails to
complete the work on time, Avery has a strong case against her and would win because by
signing the contract Dakoda is assuring Avery that she will have the work done by the
deadline. The result would change if the contract never stated the deadline was vital and the
job could take longer. In this case Avery could lose because the contract clearly states the job
could take longer and therefore it would be his responsibility to plan accordingly. Also if the 4-
6 week timeline is the company’s policy Avery might have a harder time claiming damages
unless he can prove that the delay caused specific, foreseeable losses beyond what is typical
for renovation projects.
2.
Murray enters into an agreement to sell an antique bedroom set to Anne for $200,000 because
it is exquisite and unique. Mark offers to pay Murray $250,000 for the furniture. Murray calls
Anne to cancel the contract. Anne sues Murray for breach of contract. What type of damages
will Anne seek?
Anne would seek compensatory damages to be put in the position she would have been in if
the contract had been carried out. Anne would be compensated for the financial loss she
endured due to Murray's breach of contract.
3.
Is the contract in question 2 the type of contract that usually contains a liquidated damages
clause? Why or why not?
No, because there is no part in the contract where they agree in advance on the amount of
damages that will be paid in the event of a breach.
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