Permian Oil Corporation ships its only pump to Quality Repair Inc. for repair. Permian hires Route Shipping Inc. to take the pump to Quality and to return it as soon as the repair is complete. Permian is forced to suspend operations without the pump, but Route does not know this. Permian expects to be without the pump for five days and to lose profits of $50,000. When Route does not return the pump by the end of the fifth day, Permian rents a substitute at a cost of $1,000 per day. Route delays five more days before returning the pump. Permian files a suit against the shipping company, asking for compensatory, consequential, and punitive damages. Will Permian recover?

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The Answer of Permian Oil Corporation ships its only pump to Quality Repair Inc. for repair. Permian hires Route Shipping Inc. to take the pump to Quality and to return it as soon as the repair is complete. Permian is forced to suspend operations without the pump, but Route does not know this. Permian expects to be without the pump for five days and to lose profits of $50,000. When Route does not return the pump by the end of the fifth day, Permian rents a substitute at a cost of $1,000 per day. Route delays five more days before returning the pump. Permian files a suit against the shipping company, asking for compensatory, consequential, and punitive damages. Will Permian recover?

Permian Oil Corporation Ships Its Only Pump to Quality Repair