Question

LLC.INC has an immediate requirements for 80 laptops and contracts with ZZ electronics for 80 microsoft laptops at $550 each. However, Zz electronics breaches the contract and fails to deliver the laptops. LLC then immediately contacts microsoft computer, buys 100 laptops at $600 per laptop and then sues zz electronics for the breach of contract?

What is the amount of legal damges that Br can recover from ZZ becauss of the breach?

Answer 1

Damages are the amount paid by the defaulter of the Contract to the aggrived aprty , who has suffered loss due to the breach of contract by the defaulter.

As per the Contract Laws , the amount of damages should be as per the loss incurred by the aggrieved party. The damages awarded should be such that it will put the aggrieved party in the same condition or position, as he would have been if the agreement or contract would have been fulfilled.

Here the original Conract was for 80 laptops. hence LLC INC can claim the loss on the 80 laptops.

Total damages incurred due to breach of contract = 80 laptops * ($600-$550)= $4000.

Henec only $4000 of legal damages can be recovered.