Expectated measure of damage, Business Economics

Assignment Help:

Mr. M enters into a contract with Mr. R under which R agrees to build a model railroad for $200. The value of the model railroad to M is $300. Expecting that the model railroad will be delivered, M spends $40 remodeling his basement to make room for it. Before R has received any payment from M, another model railroad enthusiast, Ms. J, offers to buy the model railroad from R for $250, which is also the value of the model railroad to J.

If R were to breach his contract with M by selling the model railroad to J, how much would he have to pay M under 1) expectation measure of damages, (b) restitution measure of damages or (c) a reliance measure of damages? In answering this question, explain the objective of each of these alternative measures of damages. Would R breach under any of these damage measures? Would it be efficient for R to breach? Explain why or why not.


Related Discussions:- Expectated measure of damage

How subsidies in agricultural trade is trade-distorting, Problem 1: (a)...

Problem 1: (a) Clearly distinguish between the theories of Comparative and Absolute advantage of trade (you are expected to use examples to illustrate your answer). (b) Acco

Is an unequal distribution of income and wealth a problem, Is an unequal di...

Is an unequal distribution of income and wealth a problem? Explain in short. Yes: because specified no government intervention, which on very low incomes cannot afford necessar

What is import substitution, What is import substitution? Import subst...

What is import substitution? Import substitution: It is a government industrialisation policy for development by replacing imports along with domestic production. St

Scale, Most studies of firms’ long run costs have found that average costs ...

Most studies of firms’ long run costs have found that average costs decline as firms produce increasingly larger output levels (economies of scale), such as for automobile firms. H

How does resource enhancement improve development, How does resource enhanc...

How does resource enhancement improve development? Enhancements in the quantity and quality of resources increases productivity hence incomes. Enhanced management raises outpu

Actively-managed mutual funds, A sample of 58 mutual funds was taken and th...

A sample of 58 mutual funds was taken and the mean return in the sample was 14% with a standard deviation of 9.3%. The return on a particular index of stocks (against which the mut

Labour markets in perfect competion, #question.discuss the contention that ...

#question.discuss the contention that the existance of a labour market is characterised by perfect competition is a fallacy.

Myth of public goods by mark davis, summarize the basic tenets of the argum...

summarize the basic tenets of the arguments in this case?

The tipical structure of a company, At which of the stages in the tipical s...

At which of the stages in the tipical structure of a company is a business given an identity separate from its owners?

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd