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

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