Question

Business partners Angel, Lucy and Maria, have finally opened their new Miami-based upscale restaurant "Noches", which specializes in authentic Latin American cuisine. The business is an instant success. Customers, including celebrities and influencers, travel from all over the country to eat at the restaurant.

Each night there is a wait list just to enter the restaurant. They are concerned that they cannot meet the increased demands and have plans to open two more restaurants within two years. In the meantime, they reinvested company profits into tripling the staff, expanding the eating and common areas, expanding the kitchen, and purchasing additional land to expand the parking lot. In total, they spent $2 million dollars in cash and accessed an additional $1.5 million dollar credit line.

At the current rate of business, they calculated a 6 months return on investment. The business hired Humberto & Sons to install five mega state-of-the-art commercial refrigerators and subzero freezers to store their substantially increased food inventory. The contract had a value of $250,000. Once fully operational, the new appliances could successfully store their entire food and beverage inventory valued at more than a $1 million dollars. After two weeks of waiting, the appliances finally arrived. However, two freezers were missing from the delivery inventory. There wasn't enough space to store all the inventory as originally planned.

The business owners reached out to the vendor to inform them of the problem but were told the owners were in Las Vegas working on another job. In all they loss 60 percent of their current frozen and perishable food inventory valued at $1.4 million and spent an additional $300,000 dollars in emergency equipment and inventory, which crippled the business's finances.

They filed a lawsuit against the vendor for breach of contract. Based on the information above, the business can seek which of the following remedies?

Answer: Injunction

According to the facts above, which of the following remedies would be appropriate to cover the $250,000.00 contract value.

		Compensatory damages
		Consequential damages
		Nominal damages
		Liquidated damages

Answer 1

Answer:

First, let explore all of the choices for the correct answer:
1. Money damages: this is the money required by the court to be paid to the group in arrears.
2. Injunction: An injunction is a special judicial order that obliges a person to do or withdraw from carrying out such actions.
3. Specific performance: In this case, the court can order the party to satisfy its legal obligations.
4. Consequential losses: Consequential damages are incidental injuries that arise as a result of a breach of contract.
5. Compensatory damages: the sum of money given to the aggrieved party as compensation for damages or injuries suffered.
6. Liquidated damages: means to compensate the parties involved in the event of a violation of the contract. In this case, the balance is set at the time of the contract.
7. Punitive damages: Punitive damages go further than the award of interest to the aggrieved party and are more likely to prosecute the defendants.

Problem 1: Users brought a lawsuit against the provider for breach of the contract. Depending on the above data, is it possible for an organization to pursue which one of the following remedies?

Response: As stated in the clarification above, the correct answer is money damage due to monetary loss.

Problem 2: In the light of the above, one of the following remedies would be sufficient to cover the contract value of $250,000.00.

Response: As explained earlier, the correct answer is compensation for damages, since the value of the deal could be taken as restitution in this situation.