The owners of Southwest Arena are in breach of contract for terminating the lease agreement a few weeks to the commencement of occupancy of the said arena. Since the officials of the arena had identified the structural failure earlier they should have commenced repairs immediately considering there was a forth coming seminar meeting to be held in that arena. However, they ignored the fact that the arena was to be used for a seminar and took the advice of the engineering firm that inspected the failure terming it as minor. The officials should he hold responsible for breaching the contract due to negligence.
Southwest arena officials are contractually liable for damages to Robbins and are obligated to pay him compensatory damages incurred due to termination of contract. These include general damages to cover the losses incurred directly and necessarily due to breach of contract. Additionally, Robbins is to receive special damages to cover the loss incurred due to conditions or circumstances that are not ordinarily predictable. In general damages Robbins is to receive $100000 in reimbursement for the amount used to lease the facility as well as any other cost they incurred for the preparation of the event. Additionally, he is to receive $140000 for special damages incurred in leasing another facility.
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Southwest arena officials committed an anticipatory breach for repudiation of contract prior to the time when the arena was to be in use by Robbins for his seminar. The fact that the officials became aware of the structural failure after the arena had been booked but they refused to commence repairs immediately shows negligence on their part. They had the option of canceling the contract early or conducting repairs in time to avoid any inconveniences. Therefore, the move by the arena officials to repudiate the contract was anticipatory constituting an offence in breaching of contract.
