Cool Clothiers agrees to buy 10,000 Blue Jays jerseys from You Da Man Jerseys. It is a term of the contract that if the jerseys are not delivered by the start of the play-offs, You Da Man will pay damages of $1,000 a day
This figure is a reasonable estimate of Cool Clothiers' lost profits in the event of delay. Later Cool Clothiers is told that the Blue Jays jerseys will be late. The Blue Jays don't make the play-offs, the New York Yankees do, and Cool Clothiers make a profit of $10,000 on Yankee jerseys that it picked up once it knew the Blue Jays jerseys would be late. The Blue Jays jerseys were delivered 15 days late, resulting in an actual loss of $1,000. Cool Clothiers sues You Da Man for breach. What are its recoverable damages? (Ignore the effect, if any, of mitigation.)
A) $1,000
B) $10,000
C) Zero
D) $15,000
E) $9,000
D
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