Locks v. Wade case brief

Locks v. Wade case brief summary
114 A.2d 875 (1955)

CASE SYNOPSIS

Defendant appealed the amount of damages awarded to plaintiff in the county district court judgment for plaintiff in plaintiff's breach of contract action.

CASE FACTS
Plaintiff leased a jukebox to defendant with a provision regarding payment of proceeds and a minimum weekly payment to plaintiff. Defendant repudiated the contract and plaintiff never installed the jukebox. Plaintiff subsequently rented the jukebox to others. In a breach of contract action, the court granted judgment to plaintiff and awarded plaintiff damages representing the minimum weekly payment for the term of the lease less depreciation and plaintiff's costs. Defendant appealed the damage award, arguing that the rent received on the jukebox should have been credited against the damage award and that the liquidated damages clause of the contract excluded any recovery by plaintiff.

DISCUSSION

• The court held that the proper measure of damages was the difference between the contract price and the cost of performing the contract because the supply in the market for jukeboxes was not limited. 
• Furthermore, the court held that the liquidated damages clause was not intended by the parties to apply where the breach occurred before use. 
• Therefore, judgment was affirmed.

CONCLUSION
The court affirmed damage award to plaintiff representing the contract price less plaintiff's cost of performing the contract because that amount was proper since supply in market for jukeboxes was not limited.


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