Question

Big Widget Company contracts with Widget Incorporated for the delivery of 5,000 green widgets and 5,000 blue widgets in the exchange for $250,000. At the time of delivery, Big Widget discovers that Widget Incorporated delivered 2,500 blue widgets, 2,500 orange widgets, and 5,000 green widgets.

Describe the types of remedies that are available and the reasons why one or more remedies may be the best option for the plaintiff

Answer 1

Given the situation described in the discussion question and based on this week’s reading, the most obvious remedy to this situation is the right of Big Widget Company to simply nullify the contract, demand a refund, and return the widgets per the concept of rescission. Most companies may choose this option because they do not want to work with a company which is unable to perform something as simple as deliver the correct product. Big Widget Company can invoke their right to demand specific performance which is where they have the court compel Widget Inc. to deliver the additional 2,500 units of blue widgets. BWC can seek consequential damages if they had a deadline to subsequently deliver the 2,500 missing blue widgets to another party and as a result suffer real damages. If Widget Inc. is unwilling or unable to remedy the situation on their own, BWC can seek compensatory damages which would essentially have the remaining goods delivered or refunded (plus expected profits from re-sale) through the court system. There may be some additional remedies available to the parties in a breached contract, but these are some of the most obvious remedies which might be sought in a situation such as the one described above.