Jim contracted with Kevin to serve as a guide for Kevin on his three-week fishing trip to Canada. The contract?
May 30, 2010 by
Filed under canada fishing vacation
Jim contracted with Kevin to serve as a guide for Kevin on his three-week fishing trip to Canada. The contract was made on April 1 with the trip to begin on June 1. On May 1, Kevin notified Jim that he had changed his mind and would be unable to make the trip. He also refused to pay Jim any compensation.
a. Because the contract is executory, Jim has suffered no damages, and Kevin has no obligation to pay any compensation.
b. Kevin has anticipatorily repudiated the contract and is liable to Jim for damages.
c. If Kevin changes his mind again and decides to go on the trip, Jim will have to perform unless he has notified Kevin that he is canceling the contract.
d. Both (b) and (c) above are correct.
This would depend upon the terms of the contract. If it is a very simple contract(you do A for B only) by canceling the trip Kevin has broken the contract and could be liable for damages because Jim may have been able to serve as a guide for someone else during that time, something which is less likely at this later date. As well, being that Jim has already broken the contract, Jim is under no further obligation. On the other hand most contracts of this variety would contain a clause (or two) regarding cancellations, generally giving time frames and costs(retention of deposit, etc.) designed to protect Jim from a loss resulting from not being able to book another chance to guide.
After careful consideration I believe the answer to be ‘all of the above’. Now please go and do your own homework. .