L.
Albert & Son v. Armstrong Rubber Co.
178
F.2d 182 (2d Cir. 1949)
Facts: The plaintiff agreed to buy
four machines from the defendant. The defendant
delivered two, then delivered the other two over two years later. The plaintiff sued for reliance damages.
Issue: To what damages is the plaintiff
entitled?
Rule: When we don’t know what the
value of performance would have been, we may assign the plaintiff reliance
damages.
Analysis: Judge Learned Hand cites
the first Restatement.
Conclusion: The case was remanded to find
out how much the plaintiff would have lost if the contract had been performed.