Your group works as legislative counsel to Representative Henrietta HolyCow. She
ID: 355011 • Letter: Y
Question
Your group works as legislative counsel to Representative Henrietta HolyCow. She recently suffered some inconvenience when a home renovation company breached its promise to install marble counters in her kitchen. "They deliberately violated our agreement, saying that Senator Lowlife had offered them twice as much money for the same work!" fumed Henrietta.
"It seems to me that someone who suffers such a deliberate breach ought to get more than simply expectation damages. Keeping one's word is a virtue, after all, and breaking it is a sort of fraud. I'm thus considering drafting legislation that will allow recovery of punitive damages against anyone who deliberately breaches a contract for financial gain."
ASSIGNMENT: Prepare for Henrietta a memo with your analysis and legal opinion of her proposed legislation. Explain punitive damages pertaining to contracts, what they are and how they work, as well as your opinion as to her idea. Cite cases and laws pertaining to same to back up your ideas and statements.
Explanation / Answer
As per the promise the home renovation company is liable to pay compensation for delierate breach of contract.
If it was promised and expected that the marble counters will be installed, and later if some one agreed to pay a higher rate and the work is not done it will be considered as breach of contract.
Not only the home renovation company is liable to get the work completed but also compensation has to be made for the delay in work and the inconvenience so caused.
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