Exercise 9
This exercise is about damages for breach of contract.
Tory and Cathy entered into a contract under which Cathy was supposed to provide the floral arrangements for Tory’s wedding on May 23. The day of the wedding arrives, but Cathy does not deliver the floral arrangements. Cory is devastated and feels that her wedding was ruined by the lack of floral arrangements. She sues Cathy successfully for breach of contract and then asks for punitive damages because her wedding was ruined. The evidence presented at court only shows that Cathy did not deliver the arrangements because she had accidentally written the wrong delivery date on her calendar.
How should the judge rule?
- A. Only award compensatory damages and not punitive, because there is not sufficient evidence to prove that Cathy had the requisite mental state for an award of punitive damages.
- The correct answer is A. There is no evidence that Cathy had an evil motive or culpable mental state arising to a malicious, reckless, willful or fraudulent level. Punitive damages should not be awarded for the breach of contract unless there is evidence showing that the breaching party had an "evil motive" or culpable mental state.
- B. Award punitive damages, because Cathy should have known that the breach would ruin Cory’s wedding.
- Sorry, but that's not the correct answer. Please select another.