Question

A farmer pays $10,000 to a trucking company to deliver a load of berries from the fields of Altar County (where they would sell for $50,000) to Lexington (where they would sell for $75,000). (Selling costs are assumed to be minimal). The refrigeration in the truck in the truck malfunctions and the berries rot. The rotten berries are sold for $5,000 by the trucking company as feed for cattle. The farmer sues for a breach of contract. What are is expectation damages? Explain.

Answer 1

Assuming the Farmer had already paid the 10,000$ and since he would have gotten 75,000$ if the trucking company had delivered as per the contract, the farmer would have earned 75,000$, and now he has nothing left as the berries were rotten and sold by the trucking company itself, the expectation damages is the amount paid by the party that breached the contract and the amount is equal to what the other party(in this case, the farmer) would have received if the party that breached had completed the contract(75,000$ in this case)

So the trucking company which received 10,000$ earlier from the farmer and 5,000$ from the rotten berries will now have to pay 75,000$ to the farmer for a net loss of 60,000$. The farmer will receive the 75,000$ and his net profit will be 65,000$.

Hope it helps. Do ask for any clarifications if required.