Contemporary Business Law 8th Edition by Henry Cheeseman

تمرين 6

Right to Cover Kent Nowlin Construction, Inc. (Nowlin), was awarded a contract by the state of New Mexico to pave a number of roads. After Nowlin was awarded the contract, it entered into an agreement with Concrete Sales Equipment Rental Company, Inc. (C E). C E was to supply 20,000 tons of paving material to Nowlin. Nowlin began pav­ing the roads, anticipating C E's delivery of materials. On the delivery date, however, C E shipped only 2,099 tons of paving materials. Because Nowlin had a deadline to meet, the company contracted with Gallup Sand and Gravel Company (Gallup) for substitute material. Nowlin sued C E to recover the difference between the higher price it had to pay Gallup for materials and the contract price C E had agreed to. C E claims that it is not responsible for Nowlin's increased costs. Who wins? Concrete Sales Equipment Rental Company , Inc. v. Kent Nowlin Construction , Inc., 106 N.M. 539, 746 P.2d 645, Web 1987 N.M. Lexis 3808 (Supreme Court of New Mexico)