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Irrigation Piping Company Ships Its Only Pump to National Hydraulics

Question 39

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Irrigation Piping Company ships its only pump to National Hydraulics Corporation, the manufacturer, for repair. Irrigation hires Overland Transport, Inc., to take the pump to National Hydraulics and to return it to Irrigation as soon as the repair is complete. Irrigation is forced to suspend operations without a pump, but Overland does not know this. Irrigation expects to be without the pump for five days and to lose profits of $5,000. When the pump is not returned by the end of the fifth day, Irrigation rents a pump at a cost of $100 per day. Overland delays five more days before returning the pump. Irrigation files a suit against Overland, asking for compensatory and consequential damages. Will Irrigation recover Explain.

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Yes and no. Irrigation will succeed in r...

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