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36. In an action against the supplier for breach of contract, will the firm be permitted to recover, as part of its damages, the additional $5,000 early- completion incentive pay it would have received from the municipality but for the supplier's breach?
A firm contracted with a municipality to repair a drawbridge and began work on February 1. The contract provided that the firm would be paid an additional $1,000 for each day the repair was completed before the April 1 completion deadline. On March 14, an unusual gear on the bridge broke. On that same day, the firm contracted with a supplier for a March 15 delivery to the bridge site of the only available replacement gear. The supplier did not know about the early-completion incentive- pay provision in the firm's contract. The supplier misdirected the delivery of the gear, and the firm did not receive it until March 20. The work on the bridge was completed on March 21. But for the late delivery of the gear, the firm would have completed the bridge repair on March 16.
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A is incorrect. An express agreement to be responsible for such damages is not required. Additionally, expressly agreeing to be responsible for such damages would put the supplier in a position of being able to foresee such damages.
C is incorrect. The supplier would only be liable for what is foreseeable.
D is incorrect. Although it is likely that, based upon the timeframe in which the firm required delivery, the supplier would know time was of the essence, they would have no reason to know about the specific completion incentives in the agreement between the firm and the municipality.