Dawn runs an office supply store. She recently entered into two separate contracts with Scott.
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- The first contract obliged Dawn to supply Scott with a unique antique printing machine displayed in her store by 1 May 2021. It obliged Scott to pay Dawn $50,000 by 15 April 2021. Before the contract was formed Scott told Dawn that he hoped to display the machine at an antique collector meet on 5 May 2021, and that he would not enter into the contract unless Dawn agreed to supply the machine no later than 1 May 2021.
- The second contract obliged Dawn to supply Scott with 10,000 boxes of photocopier paper by 1 June 2021. It obliged Scott to pay Dawn $100,000 by 15 May 2021.
Scott paid Dawn $50,000 on 15 April 2021 and $100,000 on 15 May 2021.
In breach of the first contract, Dawn failed to deliver the antique printing machine by 1 May 2021. She is yet to refund the amount paid by Scott for the machine ($50,000).
In breach of the second contract, Dawn did not deliver the 10,000 boxes of photocopier paper by 1 June 2021. She refunded the amount paid by Scott for the paper ($100,000).
QUESTION 1: Scott, who needed the paper urgently, purchased 10,000 boxes from another supplier for $105,000 (this supplier offered the cheapest price available at the time). He would like to know if he is entitled to recover damages from Dawn and, if so, the amount the court is likely to award. Advise Scott.
When answering this question, you can assume that the agreement reached between Dawn and Scott satisfies the formation requirements and is a valid, enforceable contract. You can also assume that both Dawn and Scott have the capacity to enter contracts and that there are no vitiating factors at play.
