Wayne Breaches a Contract with Tim Causing Damages of $25,000

question 11

Essay

Wayne breaches a contract with Tim causing damages of $25,000 in lost profits, when damages under ordinary circumstances would be $17,000. Explain under what circumstances a court would award $25,000.

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Definitions:

Tax Burden

The total amount of taxes paid by individuals or businesses, often expressed as a percentage of income or GDP.

Elasticity

The indicator of the responsiveness of the demand or supply of a product to shifts in key factors like price or income.

Perfectly Elastic

A perfectly elastic demand or supply refers to a situation where the quantity demanded or supplied changes infinitely in response to any change in price, represented by a horizontal line on a graph.

Tax Burden

The measure of taxes that an individual or business is required to pay, expressed as a percentage of income or profit.