Question

National Drilling Company ships its only pump to American Hydraulics Corporation, the manufacturer, for repair. National pays Overland Transport, Inc., $400 to haul the pump to American Hydraulics and to return it to National five days later when the repair is complete. National is forced to suspend operations without a pump, but National does NOT tell Overland. To avoid losing profits of $1,000 per day while the pump is out for repairs, National rents a replacement pump at a cost of $100 per day. The repairs are completed on time, but Overland does not return the pump on the day specified in the contract, and delays five more days before returning the pump. National files a suit against Overland, asking for compensatory, consequential, and punitive damages. National will most likely be awarded

Answer 1

National will prevail with regards in recovering the damages, but not for all the damages that it looks for. Overland's inability to perform quickly is a break of agreement for which National can recover damages. Although, the late delivery of pump by the Overland's, National is qualified for recover the cost of renting the pump for the five days that Overland delayed. Costs that are caused legitimately by a breach of agreement.