Business Law question...?

[raleah]

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?

[plys]

Unlikely.

American Hydraulics Corporation is the primary liable party, and that is only IF they have given a guarantee on turnaround time of repairs.

If they have not, then National has no standing to file suit against anyone.

If they have, and they have a contract with Overland that guarantees delivery times, and Overland has breached that contract by delaying the shipping.. then American Hydraulics could take suit with Overland, in an attempt to recoup from the National Vs American suit.

[cleirach70]

Not likely. Overland made no promise of delivery by any specific date, nor is it even obvious that they could have made such a delivery, since we do not know when AHC completed the repair.

[gideon]

Not based on what you have written above. Now if there is some sort of contract that promises a level of performance that Overland fails to provide then they would.

[sherborne16]

Only if they signed a contract stating that the pipe would be returned within a certain amount of time and Overland didn't meet those time requirements.

[dent81]

No