The Roastery, Inc. (TRI) was a seller of green, unroasted coffee beans to its customers. For the last five years, TRI had averaged a $190,000 annual profit after annual expenses of $2 million, and TRI now sought to develop a new Internet website to increase access to high-end customers around the country. Based on business analyses, TRI expected to make $20,000 per month additional profits from web sales ($240,000 per year). In June, TRI contracted with Candace to provide website development and support services at a cost of $1,000 per month, for a minimum of 12 months, beginning in July 1. This is approximately the same compensation that other website design experts would require for the same work, although some would have charged as little as $900/month and others would have charged as much as $1300/month. At the time of contracting, TRI paid Candace $6,000 to reserve the website domain name. Candace did substantial work preparing the base code for the new website in anticipation of starting work on July 1, but on June 30 repudiated the contract and kept the $6000 without reserving the website domain name. As discussed in Part 2 of this question, TRI hired a new website designer, Pat, at $1,100 per month for 12 months, starting August 1. Evaluate TRI’s expectancy damages claim against Candace.
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