Complete Boring Corporation Ships Its Only Pump to Drills

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The Answer is Yes and no. Complete Boring will succeed in recovering damages, but not all of the damages that it seeks.
Everywhere Shipping’s failure to perform promptly is a breach of contract for which Complete Boring can recover damages. Because of Everywhere Shipping’s late delivery of the pump, Complete Boring is entitled to recover the cost of renting the pump for the five days that Everywhere Shipping delayed. Expenses that are caused directly by a breach of contract—such as the cost to rent the replacement pump after Everywhere Shipping breached the contract—are recoverable as compensatory damages. These expenses were foreseeable.
Consequential damages—damages caused by special circumstances beyond the contract—are recoverable only if the breaching party knew or should have known at the time of contracting of their possibility. In this problem, Complete Boring’s shutdown of its operations is a special circumstance, but Everywhere Shipping did not know of these circumstances so Complete Boring’s consequent loss of profits is not recoverable.
Also, Complete Boring cannot recover punitive damages, which are not usually recoverable in breach of contract suits. Punitive damages are intended to punish wrongdoing. The purpose of damages in a breach of contract suit is to place the nonbreaching party in the position he or she would have occupied if the contract had been performed, not to punish the breaching party.

Complete Boring Corporation Ships Its Only Pump to Drills

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Complete Boring Corporation Ships Its Only Pump to Drills

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