On January 3rd, 2009 Holiday Inn Hotels entered into a contract with Great Designs Inc., an...

60.1K

Verified Solution

Question

Finance

On January 3rd, 2009 Holiday Inn Hotels entered into a contractwith Great Designs Inc., an interior decorating firm, to have theirhotel rooms re-decorated with new carpeting, bedspreads, curtainsand wall art. Holiday Inn Hotels paid Great Designs Inc., $100,000upfront and the work was to be completed by June 1st, 2009. On June1st, 2009 work in 30% of the rooms was still not complete. TheHotel had a large conference group checking in on June 30th, 2009that would result in all the rooms being occupied. The Hotel,therefore, terminated its contract with Great Designs Inc., andhired a different designer to finish the work. The new designercompleted the work on June 30th, 2009 at an additional cost of$15,000. Answer the following questions:
Did Holiday Inn Hotels act correctly in discharging itscontract with Great Designs Inc.? Explain.
Assuming that Holiday Inn Hotels did properly terminate GreatDesigns Inc., to what amount of damages is Holiday Inn Hotelsentitled? Explain.

Answer & Explanation Solved by verified expert

3.7 Ratings (676 Votes)

a Yes Holiday Inn Hotels acted correctly as there was breach of contract on the part of Great Designers Incby failing to adhere to the terms of the contract There were two options before Holiday Inn See Answer

Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:

Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!

Become a Member

Transcribed Image Text

On January 3rd, 2009 Holiday Inn Hotels entered into a contractwith Great Designs Inc., an interior decorating firm, to have theirhotel rooms re-decorated with new carpeting, bedspreads, curtainsand wall art. Holiday Inn Hotels paid Great Designs Inc., $100,000upfront and the work was to be completed by June 1st, 2009. On June1st, 2009 work in 30% of the rooms was still not complete. TheHotel had a large conference group checking in on June 30th, 2009that would result in all the rooms being occupied. The Hotel,therefore, terminated its contract with Great Designs Inc., andhired a different designer to finish the work. The new designercompleted the work on June 30th, 2009 at an additional cost of$15,000. Answer the following questions:Did Holiday Inn Hotels act correctly in discharging itscontract with Great Designs Inc.? Explain.Assuming that Holiday Inn Hotels did properly terminate GreatDesigns Inc., to what amount of damages is Holiday Inn Hotelsentitled? Explain.