Cengage Advantage Books: Law for Business 18th Edition by John Ashcroft ,Janet Ashcroft

Exercise 6

You have learned what a contract is and the consequences for failing to live up to the provisions of a contract. The usual remedy for breach of contract is money damages. But can money truly compensate the nonbreaching party for all the loss suffered? How accurately can loss of potential profit be estimated? What about the stress and inconvenience caused the nonbreaching party by the breach? Would this be difficult to measure in monetary terms? What example does failing to live up to a promise set? If an employee finds out that the company is manufacturing appliances with substandard parts so that the appliances will fail much sooner, does the employee have an ethical obligation to do anything?