HYPO: Only relates to damages: (more complex reasons about Gardens decision not to honor the contract, Carrie could have had more complex reasons for her decision-making) anticipatory repudiation – 2 places where this occurred - garden saying not going to honor its agreement o clear and unambiguous - garden’s conduct, as well o hiring of Fantasia If first repudiaton was out – then it’s possible that Carrie could have gotten word that Garden was in financial trouble – demand for assurances, or repudiation stock market closing – is this fact an excuse for Gardens failure to perform, and thereby not a breach Approach: Timeline. Figure out where breach is, and who breached first. Has Carried breached, or is she entitled to recover for Gardens breach? - What are the potential damages? Look for the following as you read through the problem: o Direct (+) from contract itself Half of 10mil from contract itself, tickets Half of 4mil from contract itself, concessions and souvenirs Adding in two potential afternoon sales: 2mil, 2mil, 4mil, 4mil Assuming everything is sold out o Consequential (+) “indirect damages that flow as a result of the breach” Sparks 15mil Album deal 7-10mil o Reliance? (+) Spent already 2mil o &Mitigation (-) Starbucks (subtract) – during the window of the show, so what she would make in four days Verizon deal o &Additional Subtraction (-) Total amt of expected expenses = 3mil - Q’s to ask yourself: o What’s the total she could get? A lot! Add up the above. o What is she going to realistically get? Go through the above one by one. Direct only if reasonably certain, foreseeable, didn’t have opportunity to mitigate Only2mil of it is
First set of tickets sold out in 5 min, the hype increases our reasonably certainty, Does the market crash impact? We don’t know. But we have reasonable certainty as to tickets, so we go with it. Other ticket sales? o Aruge it: i.e. she’s a hot artist, sold out fast, etc. not total certainty but is it reasonably certain enough Could she have mitigated? o Mitigating Contract from Verizon? Are differences enough to make that contract inferior? D.C. vs. NY, same seat numbers, same terms, venue different enough Plus, they promised her one night. Could argue the fourth night was the largest, July 4. If yes, then all the money would she could have made (parallel to Gardens deal), then take away the concert money she would have lost. She’d only recover for the other nights of the concert. Consequential Certainty? o Amt – yes o As to Fact? – condition hasn’t been met now. Would the condition have been met even if hadn’t breached? Sparks is it foreseeable? Would they foresee a spokesperson contract? It was confidential – on the one hand the rumors circulated and people contracted her… o Tied to contract with Gardens? Is that foreseeable? condition = “if sell out every concert” Album – YES, foreseeable. As to fact. But as to Amt, that is not certain. It’s speculative. New artist, new industry – to pin it at $7-10 mil. is a lot to rely on faith. If Verizon deal should have been mitigated, then the album deal damages go away because she could have also done the album if performed at Garden.