1 In preparation for her residency show in Las Vegas, Lopez received 42 free Sidekick hoverboards for use by dancers in the show. In exchange, Lopez agreed to mention the company once every three months on Twitter or Instagram. Contrary to the agreement, however, Lopez tweeted just once about the company, and hasn’t mentioned it since. Suppose the hoverboards cost Sidekick $1,000 each, or $42,000 total. Sidekick expected four tweets or Instagrams from Lopez, with the value of each post (in free publicity and increased sales) being $40,000. If they had not reached this deal with Lopez, Sidekick could instead have struck a similar deal with Mariah Carey instead, but her tweets would only have been worth $30,000 each. (a) Suppose that J-Lo had agreed to the contract, received the hoverboards, and then never tweeted or Instagrammed about Sidekick. Calculate expectation damages, opportunity cost damages, and reliance damages. (b) By tweeting just once instead of the four times that were promised, J-Lo partially performed. When a contract is partially performed, the value of the part that was performed is subtracted from damages – the promisor gets “credit” for the value that was actually delivered. Calculate expectation damages and reliance damages, given that J-Lo tweeted once about Sidekick. (c) Suppose J-Lo claims her tweets are actually worth over $100,000 each, and that by tweeting once she delivered Sidekick far more value than they had given her. Would this effect enforceability of the contract under the Bargain Theory of Contracts? Why or why not? Would this increase or decrease expectation damages? (d) Suppose J-Lo breached the contract because she simply forgot she had agreed to post about Sidekick. There are actions she could have taken to make it more likely she would remember. Under what remedy for breach would she have taken the efficient level of these actions? Why?
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