Question

Bob owns Bob’s Limo Service. Among other things, he rents limos to couples for weddings. He has a very good business. Business is so good that he often runs out of limos to rent. In these cases, he accepts the rental request and enters into a contract with the couple. Bob then rents a limo from another company to provide the service.

Renting limos from other companies usually costs Bob $500 for each rental. Bob decides its time to add another limo to his fleet to avoid this cost. Bob enters into a contract to purchase a limo for Jerry’s Car World. Here are the terms of the sales contract for the new limo.

Jerry’s Car world is to deliver a new limo to Bob on June 15^th, 2020.

Bob will pay Jerry $50,000 upon delivery. Bob tells Jerry that the car must be delivered by June 15^th. Bob tells Jerry that he has already agreed to rent the limo to a couple on June 16^th.

Jerry calls Bob on June 1^st and informs Bob that the limo won’t be delivered until June 18^th.

Bob is furious. Bob calls the couple with whom he contracted for the June 15^th rental. Bob tells the couple that he cannot provide the limo for their wedding. The couple had contracted to pay $1000 for the rental.

Bob sues Jerry’s Car World for breach of contract. Bob wins the lawsuit in court. How much can Bob recover in damages from Jerry’s Car World?

Just don’t give a number. Explain why. Use all necessary legal terms and definitions.

Answer 1

Dear, Bob contracted with jerry for a specified date as per the contract act specifying execution of work on a specified date, failure of which will lead to compensation reimbursement to the aggrieved party but the amount of compensation will depend on the loss incurred by the aggrieved party and if loss is of such type that can't be fulfilled, special damages are claimed.

In this case, Jerry failed to complete the contract but intimation was given earlier and loss is not of such nature that can't be fulfilled( if jerry would refuse on 15th or 16th, it will become the special case).

So, normal damages can be claimed, maximum upto amount of contract price.