Application of the IRAC Formula

Alpha Engineering Corporation has a contract with Beta Mart Stores to provide customized software for Beta’s inventory control system. Dis­count Outlets, Inc, Beta’s competitor, induces Tom, an Alpha subcontrac­tor who is writing code for the Beta software, to delay delivery of the code for one week. As a result, Alpha’s delivery of the software is delayed, and Beta sustains $500,000 in lost profits. On what ground could Beta recover damages from Discount Outlets?

Limit answers to approximately two paragraphs. Use the IRAC formula to address the situation. Cover the rule of law and briefly apply it to the situation.


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