Compensation - The Finance Forums: Financial planning, debt help, loans, mortgages, retirement and 401k, investment, and general finance discussion forums

fbc · #1 (**permalink**) 04-25-2008, 07:18 PM

Hi All,

I would appreciate your feedback in a case am investigating ,

Background is as follow: 2 company , company A is doing business related to automotive ( breakdown services etc) and company B is petroleum company sales car fuel and other lubricant related products. Both company entered into agreement say in 2000 for promoting loyalty program. The program was about providing smart cards to current and future customers of company A by which they can buy products of company from its various filling stations as both pre paid or on credit plus every card holder files fuel from company B’s station company A will get 2 cent , prior to this agreement company A entered into different agreement with company C ( who sales car) on promoting same smart card to customers of company C. The agreement between both A & B was for 6 years. Now reasons this contract never saw light of day. After almost 4 years company A lunched complaint calming compensation of USD 2 million and their claim based on
Loss on fixed machinery bought for this purpose
Loss on salaries for persons where hired for this agreement
Loss of potential revenue ( from sailing this card to their customer current and future , loss for not sale this card to company C customers and loss of 2 cent)

How does any one suggest to actual calculate loss of both company A and B

brian · #2 (**permalink**) 05-01-2008, 08:33 PM

Hm, I think you'd either have to ask a lawyer - or your business studies teacher.