Question

3. For Fabricator, Paris France entered into a contract with ABC Computer Inc. in Texas U.S.A. The contract provides that Fort Fabricators deliver 1,000 personal housing by November 1 to ABS Computer Inc. for a total price of $50,000. On July 1, Fort Fabricators e-mailed ABS Computer Inc. that due to a rise in raw material they could not deliver the computer housings for less than $60,000. ABC Computer Inc. replied it would insist on the original price in the contract. Fort Fabricators did not reply further. From July 1 to Octoberl, ABS Computer Inc. could have purchase substitute housings from other supplies for $55,000. On November 1, ABS Computer Inc. bought the housings for 64,000 for delivery on January 5. Because of the delay until January 5, ABS Computer Inc. suffered additional damages of $2,000. 0(1396): )What is the amount of damages the ABC Computer Inc. was entitled to? 2) Write down your reasoning.

Answer 1

3. 1. $16000

2. In order to compensate the injured party these damages are meant to place the claimant in the same position as if the contract had been performed. Thus it will include the difference between the amount of contract of Fort Fabricators and subsequent purchase I.e. $64000 - $50000 = $14000 and the amount that is suffered due to delay i.e. $2000