Fact Pattern 7-1
Prudence offered to sell her car to Danny for $3,000. Danny was not sure what to do, so he asked Prudence if she would hold the offer open for him for one week for $50. Prudence said sure, and the parties signed a contract to the effect that Prudence would hold the car. A few hours, Bobby unexpectedly offered Prudence $3,500 for the car, and Prudence sold it to him on the spot. Danny decided to buy the car, but when he came by to pick it up the next day, it was gone. Prudence gave Danny his $50 back telling him that was her only obligation and that if he had any complaints, he could take it up with Bobby. Danny found a similar car the next week for $3,500 and purchased it.
-Refer to fact pattern 7-1. What damages,if any,could Danny likely collect against Prudence in litigation over the car?

Question

Quizplus · Accepted Answer

Danny could likely collect compensatory damages consisting of $500, which represents the difference between the price he agreed to pay for the car ($3,000) and the price for which Prudence sold it to Bobby ($3,500). This is because Prudence breached her contract with Danny by selling the car to someone else before the expiration of the one-week period for which she agreed to hold the offer open. The $50 that Prudence returned to Danny would not be considered a valid remedy for the breach of contract.

Fact Pattern 7-1 Prudence Offered to Sell Her Car to Danny for $3,000