A musician orders a run of 10,000 CDs from a manufacturing company. The price of the order is $25,000 and the deal is put to writing and signed. For an order of this size, the manufacturi

A musician orders a run of 10,000 CDs from a manufacturing company. The price of the order is $25,000 and the deal is put to writing and signed. For an order of this size, the manufacturing company’s profit is $5,000. The musician changes his mind and cancels the order by telephone. At the time of cancellation, only 1,000 CDs had been actually manufactured. Must the musician pay the entire cost of $25,000, or can he simply pay for the actual cost of the 1,000 CD’s actually manufactured plus the $5,000 lost profit and call it a day?

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