Does the Statute of Frauds create a defense to the lawsuit against the hotel? Why or why not?
In a telephone conversation with a sales representative of a linen company, the manager of a hotel ordered $1,000 worth of sheets. Following the conversation, the manager wrote a memo to the file documenting the agreement, initialed it, and sent a copy to the sales representative.
One of the linen company’s competitors learned of this contract and contacted the hotel to tell them that the sheets were poorly manufactured and that they should stop buying from the linen company and buy everything from the competitor. The hotel then cancels the contract and starts buying from the competitor. The linen company’s sheets are not poorly manufactured.
The linen company can sue both the competitor and the hotel for losses suffered, one for a tort and one for breach of contract, but the linen company is not allowed to recover twice for the same harm.
What is the tort that the linen company can sue for and who is the defendant?
Who should they sue for the breach of contract claim?
What damages would be recoverable from each defendant so that it would not be recovering the same damages twice?
- Does the Statute of Frauds create a defense to the lawsuit against the hotel? Why or why not?
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