California Pizza Kitchen (CPK), a well-known restaurant throughout the State of California, decides to open its first establishment in Nevada just off the Las Vegas Strip. The reason why CPK wanted to open in this location was that the NFL has plans to move a team from Oakland to Las Vegas in time for the upcoming football season and they wanted to be the closest pizza shop to the stadium, which is being built right now. CPK opens and initially business is slow.
Earlier today, the NFL announced that due to financing falling through with potential ownership that there would be no team coming to Las Vegas for the foreseeable future and that no stadium is going to be built. Upon hearing this news, CPK sues the NFL and the potential ownership group in Las Vegas for breach of contract, as the restaurant expected significant profits from the team’s move to Las Vegas, which they will now not receive. Which of the following best describes how the court will rule in this case?
Group of answer choices
a. CPK is entitled to damages for the NFL’s alleged breach of contract because CPK is a creditor beneficiary.
b. CPK is entitled to damages for the NFL’s breach of contract because CPK is a donee beneficiary.
c. CPK is not entitled to damages for the NFL’s alleged breach of contract because CPK is an incidental beneficiary.
d. CPK is not entitled to damages for the NFL’s alleged breach of contract because the NFL never agreed to a novation for CPK’s opening of its restaurant.
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