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BC Metal Works Agreed to Purchase Steel Rod from Vancouver

Question 52

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B.C. Metal Works agreed to purchase steel rod from Vancouver Smelters Ltd. Delivery was to take place on April 1st. On March 24th, Vancouver Smelters advised Metal Works that the steel rod could not be delivered because of production problems. Metal Works accepted the anticipatory breach of Vancouver Smelters and reserved their right to sue for damages. On April 1st, Metal Works commenced looking for an alternate supply of steel rod and located a supply in Seattle, Washington. The rods could not be delivered for seven days causing Metal Works to shutdown their operations for three days. Metal Works sued Vancouver Smelter for breach of contract. What legal obligation did Metal Works have and what remedy would they be entitled to?

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Once B.C. Metal Works accepted the breac...

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