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Contract Remedies
Write a short essay, between 400 and 500 words, responding to
the assignment below. You are expected to utilize the textbook and
outside resources to provide accurate and substantive answers to
the question. Also, be sure to make use of illustrating examples
where appropriate. Submit your work in APA format.
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?

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