Question

It is a Business Law question

Classique Cars Ltd rent out limousines for $200 per day, almost invariably to people arranging wedding parties. It is one of several companies to do so. On one occasion, Classique found that it was over-booked and did not have enough limousines to meet its rental obligations. It therefore called Adam, with whom it had entered into a rental contract a week earlier, and informed him that he would not be provided with a vehicle. Adam responded by informing Classique for the first time that he did not want a limousine for a wedding party. He needed the car to film a scene in a movie that he was directing. Adam also told Classique that if he did not receive a limousine, the filming schedule for his movie would be set back on day at a cost of $50,000.00.

If Adam sues Classique, identify two reasons why he may not be entitled to recover $50,000.00 in expectation damages.

Subject: Business Law

I'm going to select "finance" as a subject but it is NOT a finance question. It's a business law question but it is not on the list of subject and in order to post this question i had to select a subject so i selected finance.

Answer 1

answer-

The first reason that if Adam sues Classique would not be able to recover or entitled to recover $50,000.00 in expectation damages because Classique Rent their Cars for Only wedding Purposes not for other purposes like Adam said he wanted limousine for movie shooting. This goes against company policy of Classique Cars Ltd .

Second reason is that Adam mislead or hide the fact from Classique which make contract void because in order to make a contract valid and enforceable. parties has to disclose all the essential and relevant information to each other but Adam hide the use of limousine so He mislead the Classique. He was using Car for commercial purpose like movie shooting not for wedding so Contract would be void.

So, Adam would not be entitled for expectation damages.

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