Mistletoe Express Service v. Locke
| Mistletoe Express Service v. Locke | |
| Court | Court of Appeals of Texas, Texarkana |
|---|---|
| Citation | 762 S.W.2d 637 (1988) |
| Date decided | 1988 |
Facts
Phyllis Locked entered into a contract with Mistletoe which provided that Locke would perform a pickup and delivery service for Mistletoe at various locations in Texas. The agreement would continue for one year with a month by month renewal after the first year until either party terminated by a thirty-day written notice. Locke made certain expenditures in performing her side of the contract, and then Mistletoe canceled the contract before the year was over.
Procedural History
Mistletoe appeals from an adverse judgment in a breach of contract suit.
Issues
Whether an injured party may collect reliance interest when expectancy would suffer him a loss.
Holding
Judgment for the plaintiff in the amount of $13,000.
Rule
The injured party may choose to ignore the element of profit and recover as damages his expenditures in reliance. He may do this in the case of a losing contract in which he would have had a loss rather than a profit. In that case, it is open to the party in breach to prove the amount of the loss, to the extent that he can do so with reasonable certainty and have it subtracted from the injured party’s damages.
