Do you have damages if your lose no money, perform any act, in reliance on a statement that moves you to enter into a contract?

Asked 6 months ago - San Diego, CA

If I tell you 'A' is available and you enter into a contract with me to get you 'A' and I learn later 'A' is no longer available and inform you of this and you terminate the contract, have you really suffered any damages? At the time the statement I believed it to be true. Am I at all liable for your disappointment.

Attorney answers (3)

  1. Lubna Khan Jahangiri

    Contributor Level 11

    3

    Lawyers agree

    Answered . Michael Doland has provided an insightful analysis. Once you and your buyer have signed a contract under which you are to provide him A at a certain price, it becomes binding on you. If A is no longer available to you, you are still bound by the contract, unless the contract specifically states that you will provide him with A only if A is available to you. Otherwise, the buyer may get A from another source or "cover," because he may need A for his buyer and if he pays more than the price you offered him, he may sue you for the difference, as Mr. Doland suggested. If your buyer gets A from somewhere else for a cheaper price, then you are off the hook, unless there are delay damages. Your scenario leaves room for numerous possibilities.

    This answer does not create an attorney client relationship. Further, as the answer is going to be posted in... more
  2. Dana Howard Shultz

    Contributor Level 20

    2

    Lawyers agree

    Answered . Based on the limited facts you have provided, I see no damages.

    The law typically does not provide compensation for disappointment.

    This information does not constitute legal advice and does not establish an attorney-client relationship.
  3. Michael Charles Doland

    Contributor Level 20

    2

    Lawyers agree

    Answered . I think Mr. Shultz and I evaluate the vague facts differently. The reason is no one makes a contract to obtain something without discussing price.

    If I advise you that A oil is available at $10 a barrel and you enter in a contract to get you oil at $10 a barrel and A oil is no longer at $10, then I have a right to go into the market (under the UCC) and "cover" at the market price. Then I sue you for the difference between the market price and $10.

    The above is general legal and business analysis. It is not "legal advice" but analysis, and different lawyers may... more

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