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Cengage Advantage Books: Law for Business 19th Edition by John Ashcroft,Katherine Ashcroft,Martha Patterson
Edition 19ISBN: 978-1305654921Cengage Advantage Books: Law for Business 19th Edition by John Ashcroft,Katherine Ashcroft,Martha Patterson
Edition 19ISBN: 978-1305654921 Exercise 15
A B Industries of Morgan City, Inc., a shipbuilder, contracted to build two tug boats for Odyssea Vessels, Inc. in consideration of $3,752,000 per boat. Under the contract, A B was responsible for securing materials, fabrication, and general outfitting of the vessels. Odyssea agreed to provide design drawings through an engineering firm. The agreement also provided that A B would not be liable for liquidated damages or penalties for failure to complete their work within the specified time. After signing the contract, Odyssea delayed in sending necessary design drawings to A B. Over several months, the shipbuilder repeatedly requested the design package and warned Odyssea that it would be impossible to continue the project without the drawings. The delay caused A B extensive loss, due to the rise in building materials and labor costs. Odyssea filed suit against A B for breach of contract, because A B failed to finish the vessels on time. A jury found that Odyssea breached the contract and awarded A B $393,527 in damages. Odyssea argued that the court erred in awarding damages and the remedy for the breach should have been an extension of time for A B to complete the work. Would simply granting an extension of time to finish the project fully compensate A B for its loss?
Explanation
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Facts:
In this case, A Industries contr...
Cengage Advantage Books: Law for Business 19th Edition by John Ashcroft,Katherine Ashcroft,Martha Patterson
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