12. Should the court enter judgment according to the jury's verdict?

After a four-day trial, the judge instructed the jury to issue a verdict and answer three written questions: (i) was there a valid contract; (ii) did the merchant breach the contract; and (iii) was the importer entitled to damages for breach of the contract? The jury answered «no» to the first question and «yes» to the last two. The jury returned a verdict in favor of the importer but awarded him no damages. None of the parties filed any post-verdict motions.

An importer filed a proper diversity lawsuit against a merchant in State A federal court, seeking damages for breach of contract. The merchant argued that the contract was invalid on the grounds of incapacity and that the importer would not have been entitled to damages under the contract in any event.

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