An Underground Water Main Burst in Manhattan and Flooded the Building

Essay

An underground water main burst in Manhattan and flooded the building where Acme Inc. has an electricity supply substation. A fire resulted and disrupted electric power for four days. This occurred during the biannual "Buyers Week," when merchandisers from around the world were in town to visit fashion showrooms and place orders for future seasons. Around 200 merchandisers brought suit against Acme. Some of the businesses had no direct contractual relationship with Acme. They argued that their lease agreements with their landlords, who were the direct contracting entities with Acme, obligated them to pay a share of the electricity expenses and therefore they could sue under the contract agreement between the landlords and Acme. Are the demands of the businesses with no direct contractual relationship with Acme justified?