Discusison Question 1
Campbell Corporation ships its only hydraulic pump to Delta, Inc. the manufacturer, for repair. Campbell has no other pumps. Campbell hired Shippers, Inc. to take the pump to Delta and return it to Campbell as soon as the repair is complete. Campbell is forced to suspend operations since it does not have another pump, but Shippers, Inc. does not know this. Campbell expects to be without the pump for five days and to lose profits of $10,000. When the pump is not returned by the end of the fifth day even though it has been properly repaired by Delta, Campbell rents a pump at the cost of $200 per day. Shipping, Inc. delays five more days before returning the pump. Campbell files a suit against Shipping, Inc. asking for compensatory, consequential, and punitive damages. Will Campbell recover, and if so, how much?
Discusison Question 2
Emma contracts in writing to sell her Ford pickup truck to Gary for $10,500. Emma agrees to deliver the truck on Friday, and Gary promises to pay $10,500 on the following Monday. On Thursday, Gary tells Emma that he changed his mind and will not buy the truck. Over the weekend, Gary changes his mind again and tenders $10,500 to Emma on Monday. Emma has not sold the truck to another party but refuses the tender and refuses to deliver the truck. Gary claims that Emma has breached their contract. Emma contends that Gary's repudiation released her from her duty to perform under the contract. Who is correct and specifically why?