Locks v. Wade

• Locks = plaintiff = owner of a jukebox = provider of warranty for the jukebox
• Wade = defendant = he agreed lessee of the jukebox for 2 years at $20/week ($836 total for 2 years)
• Wade repudiated the contract (before commencement) because he no longer wanted the jukebox
• In other words, Wade never actually leased the jukebox despite the repudiated contract
• Locks gave the contract to another client

Locks (owner of the jukebox) sued Wade.

The trial court in New Jersey found Wade liable for contract breach. The court awarded Locks a judgment of $836.

If a lease contract is breached, is the

• (proper measure of damages) =?
• (the revenue)
• minus -
• (the costs that would've been incurred in performing the contract)?

Locks argued that the damages amount Locks received should have been reduced by the amount the plaintiff received from the 2nd lessee.

Yes. If a lease contract is breached, the proper measure of damages is the revenue minus the costs that would've been incurred in performing the contract.

Affirmed

Judge Clapp: Here, the lessor (Locks) owned more than 1 article (the jukebox) to lease out. So, the damages Wade must pay can't be reduced by the profit Locks made from the 2nd lessee.

Contracts_Ayres/9th_ed._Outline#D._Measuring_Money_Damages