Contractual Remedies Haply Inc. contracts with Barksdale LLC to
have an engine repaired. After much negotiation, the parties agree
that the engine will be repaired and reinstalled at Haply’s
facilities in 5 days. Haply plans on losing $40,000 a day for each
day the engine is not delivered after the five-day window (this is
the cost for a replacement engine). Haply tells Barksdale’s
representatives that if the engine is not repaired on time that bad
press will cause Haply to lose a client’s business totaling
$3,000,000. Barksdale does not complete the contract until day 7.
It cost Haply $500 to secure the delivery of a replacement engine.
The actual rental of the replacement engine cost $40,000 a day. And
Haply lost the business of a client totaling $3,000,000. Haply sues
Barksdale for incidental, consequential and compensatory damages.
The court finds that there is a breach of contract. What are the
consequential, incidental, and compensatory damages that Barksdale
is liable for in this case? Be sure to define each of those terms.
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