A) A manager of a law firm in Los Angles, California ("Manager") wishes to buy 1,000 boxes of Dunder paper from Dunder paper company in Scranton, Pennsylvania. Manager sends a letter to Dunder offering to buy 1,000 stacks of Dunder paper for $20/per stack. This is a low-ball offer, but Manager is requesting a number of boxes for a single shipment that exceeds Dunder's normal output. A Dunder sales representative calls Manager to discuss the issue, rejecting the offer, but stating he wishes to do business with Manager's law firm.

Several emails and phone calls ensue.In the final phone call on Monday, the parties reach an agreement for 1,000 stacks of Dunder paper for $25/stack for a total of $25,000 with the shipping to be arranged in a reasonable amount of time.On Tuesday, Dunder sends a letter to Manager stating "This is to confirm we have reached agreement on the sale of 1,000 stacks of paper.Dunder will ship this order to law firm Manager via US Express on Wednesday."Manager receives the email and completes an online payment in the amount of $25,000.On Wednesday, US Express picks up the order, completes the paper work and initiates shipping.Dunder notifies Manager of the shipment procedure. US Express flies the shipment to one of its warehouses outside of Chicago, with anticipated delivery to the law firm occurring on Thursday.However, a US Express employee leaves a lit cigarette on the floor during a break, which causes a small fire that burns several shipments of goods in the warehouse including the boxes containing all of the Dunder stacks of paper destined for the law firm.

Who bears the risk of loss for this shipment of paper and why?

B) Same fact pattern as above, except there is no fire and no damage to the shipment in Chicago. However, a different Dunder sales representative also sold a large part of Dunder's inventory to a Philadelphia company on Tuesday morning. Unfortunately, when the sales representative attempts to complete the order placed by Manager, she learns for the first time that there are only 700 stacks of paper available. The Dunder sales representative ships the 700 stacks of Dunder paper using US ExpressThe delivery of the 700 stacks arrives on time at the law firm.On Thursday, 300 stacks of non-Dunder paper are available and the Dunder sales representative promptly ships the 300 stacks of non-Dunder paper to the law firm using the same procedures.Dunder calls to apologize and confirm shipment.The second delivery arrives at the law firm on Friday.

Law Firm files a breach of contract lawsuit claiming the 300 stacks of non-Dunder paper breached the terms of the contract.

Will the law firm prevail in the lawsuit? Why or why not?If your answer is "yes," what is the value of the damages?