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book Contemporary Business Law 8th Edition by Henry Cheeseman cover

Contemporary Business Law 8th Edition by Henry Cheeseman

النسخة 8الرقم المعياري الدولي: 978-0133578164
book Contemporary Business Law 8th Edition by Henry Cheeseman cover

Contemporary Business Law 8th Edition by Henry Cheeseman

النسخة 8الرقم المعياري الدولي: 978-0133578164
تمرين 6
Specific Performance The California and Hawaiian Sugar Company (C H), a California corporation, is an agri­cultural cooperative owned by 14 sugar plantations in Hawaii. It transports raw sugar to its refinery in Crockett, California. Sugar is a seasonal crop, with about 70 percent of the harvest occurring between April and October. C H requires reliable seasonal shipping of the raw sugar from Hawaii to California. Sugar stored on the ground or left unharvested suffers a loss of sucrose and goes to waste.
After C H was notified by its normal shipper that it would be withdrawing its services at a specified date in the future, C H commissioned the design of a large hybrid vessel-a tug of a catamaran design consisting of a barge attached to the tug. After substantial negotiation, C H contracted with Sun Ship, Inc. (Sun Ship), a Pennsylvania corporation, to build the vessel for $25,405,000. The contract gave Sun Ship one and three-quarter years to build and deliver the ship to C H. The contract also contained a liquidated damages clause calling for a payment of $17,000 per day for each day that the vessel was not delivered to C H after the agreed-upon delivery date. Sun Ship did not complete the vessel until eight and one-half months after the agreed-upon delivery date. Upon delivery, the vessel was commissioned and christened the Moku Pahu.
During the season that the boat had not been delivered, C H was able to find other means of shipping the crop from Hawaii to its California refinery. Evidence established that actual damages suffered by C H because of the nonavail­ability of the vessel from Sun Ship were $368,000. When Sun Ship refused to pay the liquidated damages, C H filed suit to require payment of $4,413,000 in liquidated dam­ages under the contract. Can C H recover the liquidated damages from Sun Ship? California and Hawaiian Sugar Company v. Sun Ship , Inc., 794 F.2d 1433, Web 1986 U.S. App. Lexis 27376 (United States Court of Appeals for the Ninth Circuit)
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Contemporary Business Law 8th Edition by Henry Cheeseman
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