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Contractual Remedies

In: Business and Management

Submitted By cateyez06
Words 549
Pages 3
Contractual Remedies
Brandi Brothers
Grantham University

Abstract
When one breaches a contract, the non-breaching party may be entitled to compensations because of legal rights detailed in that contract. In this paper I will discuss an agreement between two parties that resulted in a breach of contract. I will also discuss the consequential, incidental and compensatory damages that one company is liable for in this case.

Haply Inc. goes under contract with Barksdale LLC to get an engine fixed. During that time both companies came to a settlement that the engine would be fixed and reinstalled at the Haply’s facilities but in five days’ time and no more. Barksdale was also briefed by Haply and made them aware that if the engine wasn’t repaired on time that bad press would cause them to lose a client which Haply would have to come out of pocket $40,000 per day for a replacement if the engine wasn’t delivered after the five-day window. Barksdale did not complete the contract until the 7th day. Because Barksdale did not honor their contract, Haply had to come out of pocket $40,000 per day for those extra days and another $500 to secure the delivery of the replacement engine. Barksdale didn’t fulfill their end of the bargain resulting in Haply losing a client’s business totaling $3,000,000. Because this was such a big lost for Haply they decide to sue Barksdale for incidental, consequential and compensatory damages. Incidental damages are defines as something that happens by accident or without intent. Consequential damages are defined as damages demanded and/or granted in a lawsuit which were caused as a direct predictable result of misconduct (2008). Compensatory damages are defined as the totality of money awarded to an individual or persons who suffers damages or losses directly caused by the acts of another (2014). The difference…...

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