Contemporary Business Law 8th Edition by Henry Cheeseman

Exercise 4

Right to Recover Lost Profits Saber Energy, Inc. (Saber), entered into a sales contract with Tri-State Petroleum Corporation (Tri-State). The contract called for Saber to sell Tri-State 110,000 barrels of gasoline per month for six months. Saber was to deliver the gasoline through the colonial pipeline in Pasadena, Texas. The first 110,000 barrels were delivered on time. On August 1, Saber was informed that Tri-State was canceling the contract. Saber sued Tri-State for breach of contract and sought to recover its lost profits as damages. Tri-State admitted its breach but claimed that lost profits is an inappropriate measure of damages. Who wins? Tri-State Petroleum Corporation v. Saber Energy , Inc. 845 F.2d 575, Web 1988 U.S. App. Lexis 6819 (United States Court of Appeals for the Fifth Circuit)