Informal contracts include all contracts other than formal contracts.
Motor Vehicles Body Shops contracts to buy from Paint Supply & Equipment
Headquarters, Inc., twenty-four spray paint guns at $30 each to be delivered by October
Paint Supply knows that Motor Vehicles Body Shops will use the guns to complete a
special job by October 31 for a certain auto dealer. Motor Vehicles Body Shops expects
to make $17,000 profit from the job. Paint Supply fails to deliver on October Motor
Vehicles Body Shops attempts to buy substitute spray guns, but must pay $40.00 for
each and take delivery on October 15, cutting Motor Vehicles Body Shops profits when
the dealer arranges for some of the job to be done elsewhere. Motor Vehicles Body
Shops sues Paint Supply. What is the measure of recovery?
In choosing a form of business organization for a new enterprise, important factors
include the ability to raise capital.