A problem of Contract Law

A problem of Contract Law

waiareyou@yahoo.com.hk (waiareyou)	3/30/2005 10:35:58 PM
Amy was a well-known exporter whose business was to export goods to Singapore and Malaysia. As she needed to keep a large stock of goods, Amy signed a contract with Paul on 1 January 2004 to store goods in Paul's warehouse at a rate of $5000 per month for one year. It was provided in the contract that Amy could take her customers to the warehouse for them to inspect the goods anytime from 9 am to 5 pm any day. In May 2004, Amy had a chance to expand her business into Canada, as Sunny, a Canadian importer, expressed an interest in Amy's goods. On 31 May, Amy offered to sell to Sunny some of her goods in Paul's warehouse for $200,000. Sunny said he would accept the offer provided he was satisfied with the quality of the goods after inspection. Amy immediately brought Sunny to Paul's warehouse at 4.30 pm on 31 May. But she was refused entry by the guard, who claimed he was instructed not to let anyone in without authorization from Paul. Paul, however, could not be reached that day, as he was out of town and would only be back the following day. Sunny, however, could not wait for another day, as he had to leave Hong Kong that night. Sunny therefore rejected Amy's offer. Sunny would have been Amy's first customer from the North America had he accepted the offer. Amy claimed that she lost $100,000 possible profit in the failed deal with Sunny (i.e. her offer on 31 May to sell goods in Paul's warehouse to Sunny for $200,000). Amy further claimed that Sunny would have become a long term customer had the deal gone through and she could expect to earn profits of about $3,000,000 in the next two years from Sunny. Very angry with Paul, Amy rented another warehouse that belonged to Jennifer on 1 June 2004 for one year starting from June 2004 for a monthly rent of $10,000 and immediately moved all her goods from Paul's warehouse to Jennifer's. Evidence shows that had Amy been more patient she could have rented a similar warehouse for only $6,000 per month. Amy of course refused to pay the rent from June 2004 onwards to Paul. Rent for the period from January to May 2004 had already been paid and Amy did not intend to claim it back. Paul claimed Amy was in breach of contract for not paying the remaining rent (i.e. rent for June to December 2004) and wanted to claim damages. Amy in turn wanted to claim damages from Paul. Advise Amy.



Jonathan Sachs	4/6/2005 10:25:02 PM
On Wed, 30 Mar 2005 22:35:58 -0500, waiareyou@yahoo.com.hk (waiareyou) wrote: Amy was a well-known exporter... signed a contract with Paul... Paul claimed Amy was in breach... Amy in turn wanted to claim damages from Paul. Advise Amy. I think you should tell us something about the background of your question. Are you Amy, or a friend of Amy? Or a first-year law student looking for some free help with your coursework? You're probably aware that your post reads exactly like a question from a law school final exam. My email address is llm040903 at earthlink dot net.

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