Question

​ National Drilling Company ships its only pump to American Hydraulics Corporation, the manufacturer, for repair. National hires Overland Transport, Inc., to take the pump to American Hydraulics and to return it to National as soon as the repair is complete. National is forced to suspend operations without a pump, but Overland does not know this. National 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, National rents a pump at a cost of $100 per day. Overland delays five more days before returning the pump. National files a suit against Overland, asking for compensatory, consequential, and punitive damages. Will National recover?

Answer 1

Answer:

The answer is: National will succeed in its claim for compensatory damages only (no consequential or punitive damages).

Explanation:

Overland's failure to perform breached the contract it had with National. So National can sue to recover the costs of renting the pump for the five days delay. Any expenses that are caused by a contract breach may be recovered as compensatory damages.