BA265 Business Law II
Terrance L. Williams
December 8, 2012
In our case of National Drilling Company filing suit against Overland Transport, Inc. asking compensatory, consequential, and punitive damages, the recovery of National will be based on Quasi Contract. As one reads through the scenario, he or she may ask themselves a few questions. What were the exact terms of the contract between National Drilling and Overland Transport? Did National Drilling have in writing or inform Overland how they (Overland) would know when the pump’s repairs were complete? This is significant in that if American Hydraulic or National Drilling knew the pump was repaired, but didn’t inform Overland Transport, how could Overland be held liable? Was it American Hydraulics duty to inform National Drilling or Overland Transport the pump was ready? Lastly, what party was in charge of alerting Overland the pump was ready? These are just a few questions one may ask. Since no terms like this were mentioned in the paragraph, one has to assume no actual contract exists. Our text book tells us that in some situations, when no actual contract exists, a court may step in to prevent one party from being unjustly enriched at the expense of another party. This seems to be the situation set up by the agreement between National Drilling and Overland Transport. National Drilling is seeking compensatory, consequential, and punitive damages. Let’s take a look at what it takes for parties that are involved with disagreements such as ours to receive these types of damages in a court of law. Compensatory damages are damages that compensate the nonbreaching party for the loss of the bargain (Miller & Hollowell, 2011). These damages are equivalent to the damages sustained by the aggrieved party. Consequential damages are special damages that compensate for the loss that is not direct or immediate (Miller & Hollowell). Our text book...
Please join StudyMode to read the full document