Question

ABC Art Gallery, Inc. hired Macey to manage its new art gallery at an annual salary of $75,000 per year. However, before Macey started, ABC told her it was not going to open the new gallery, and Macey would have to find work elsewhere. If Macey finds a different job at a higher salary, ABC is not liable to her in contract.

a. True
b. False

Answer 1

The assertion that ABC Art Gallery, Inc. is not liable to Macey in contract if she finds a higher-paying job is false. ABC may still owe damages for breach of contract, though Macey's new job can potentially mitigate these damages.

Step-by-step explanation:

The statement regarding ABC Art Gallery, Inc. and Macey's employment situation touches on the concept of contract law. The assertion that if Macey finds a job at a higher salary, ABC would not be liable to her in contract is false. When ABC hired Macey and then retracted the offer, it breached the employment contract. Regardless of Macey's subsequent employment status or salary, ABC may still be liable for damages due to breach of contract. These damages could potentially compensate Macey for losses incurred from the breach, such as the time spent unemployed or costs associated with a job search. However, if Macey finds a new job, her damages could be mitigated, meaning ABC might owe her less in damages. But ABC's liability is not automatically negated simply because Macey's new job pays more.