Haply Inc. V. Barksdale LLC

780 Words2 Pages

In contract law, in the event that parties enter into an agreement for product or services a contract is formed and can be enforced by the law. In the event that the contract is breached both parties have the rights for relief if the contract has not been satisfied. The types of remedies in contract law, when a contract is breached, are damages, rescission and restitution, and specific performance. Damages are a way of compensating the innocent party when the contract has been breached. Rescission is when the party that has failed to meet the agreement of the contract must restore the innocent party to the position prior to the contract being formed. In some cases, if the product is involved the party found in fault would be ordered …show more content…

vs. Barksdale LLC, Haply contracted Barksdale to have an engine repaired for a client. Both parties had agreed that Barksdale LLC would fix the engine pump and reinstall it at the Haply facility within five days. Haply's, Inc had figured that if the engine were not delivered within the five-day window, it would cost $40,000 for each day it is not delivered. The $40,000 is the total cost for the replacement engine. Haply's, Inc also figures that the delay could cause the loss of the client for future business that could total $3,000,000. Barksdale breached the contract by not completing the work until day …show more content…

Incidental damages are rewarded in contract law as compensation for additional expenses that arise from the breach of contract. Based on the Uniform Commercial Code (UCC), incidental damages include any reasonable charges that result in the breach of contract (USLegal.com, 2015). The charges include the stopping of a delivery, expenses or commission incurred from stopping delivery, care and custom of the goods (USLegal.com, 2015). In the case of Haply, Inc vs. Barksdale, the plaintiff is suing for incidental damages. The incidental damages that Barksdale would be required to pay are $500.00 and the rental of replacement engine at $40,000 per day. The total of $120,500 was the additional money Haply, Inc. had to pay to secure the delivery of the engine and rental of a replacement engine, which was the direct result of the breach of the

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