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question
A firm contracted with a municipality to repair a drawbridge and began work on February 1. The contract provided that the firm would be paid an additional
$1,000 for each day the repair was completed before the April 1 completion deadline. On March 14, an unusual gear on the bridge broke. On that same day, the firm contracted with a supplier for a March 15 delivery to the bridge site of the only available replacement gear. The supplier did not know about the early-completion incentive- pay provision in the firm's contract. The supplier misdirected the delivery of the gear, and the firm did not receive it until March 20. The work on the bridge was completed on March 21. But for the late delivery of the gear, the firm would have completed the bridge repair on March 16. In an action against the supplier for breach of contract, will the firm be permitted to recover, as part of its damages, the additional $5,000 early- completion incentive pay it would have received from the municipality but for the supplier's breach?Plain-text mathematical notation (without MathML)
A firm contracted with a municipality to repair a drawbridge and began work on February 1. The contract provided that the firm would be paid an additional $1,000 for each day the repair was completed before the April 1 completion deadline. On March 14, an unusual gear on the bridge broke. On that same day, the firm contracted with a supplier for a March 15 delivery to the bridge site of the only available replacement gear. The supplier did not know about the early-completion incentive- pay provision in the firm's contract. The supplier misdirected the delivery of the gear, and the firm did not receive it until March 20. The work on the bridge was completed on March 21. But for the late delivery of the gear, the firm would have completed the bridge repair on March 16. In an action against the supplier for breach of contract, will the firm be permitted to recover, as part of its damages, the additional $5,000 early- completion incentive pay it would have received from the municipality but for the supplier's breach?
Original LaTeX notation
A firm contracted with a municipality to repair a drawbridge and began work on February 1. The contract provided that the firm would be paid an additional $1,000 for each day the repair was completed before the April 1 completion deadline. On March 14, an unusual gear on the bridge broke. On that same day, the firm contracted with a supplier for a March 15 delivery to the bridge site of the only available replacement gear. The supplier did not know about the early-completion incentive- pay provision in the firm's contract. The supplier misdirected the delivery of the gear, and the firm did not receive it until March 20. The work on the bridge was completed on March 21. But for the late delivery of the gear, the firm would have completed the bridge repair on March 16. In an action against the supplier for breach of contract, will the firm be permitted to recover, as part of its damages, the additional $5,000 early- completion incentive pay it would have received from the municipality but for the supplier's breach?
choices
- No, because the supplier did not expressly agree to be responsible for such damages.
- No, because the supplier did not know and had no reason to know about the early- completion incentive-pay provision.
- Yes, because the supplier is liable for all damages flowing directly from its breach.
- Yes, because, by the nature of its contract with the firm, the supplier should have known that time was of the essence.
subject
professional_law
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