For $5,600, Jackstone Inc. agreed to repackage, and ship nine container loads of zipthrow toys from China. These containers from China were to be received during the next three months. Two containers arrived and were serviced according to the contract. The other seven containers never arrived and neither did any payment. What is Jackstone legally entitled to?

Question

Quizplus · Accepted Answer

Jackstone is entitled to quantum meruit on the two containers that were serviced, meaning they should be paid for the work that was completed. As for the other seven containers that never arrived, they would be entitled to loss of profits since those containers were never received and thus they were unable to fulfill their contract. However, they are not entitled to the entire $5,600 since they did complete work on two of the containers.