ABC Manufacturing Ltd ("ABC") made a contract with a courier company called Fedex to have Fedex deliver a specialty gasket that ABC needed to repair one of its manufacturing machines. Fedex agreed to deliver the gasket to ABC's factory by 5:00pm Wednesday, August 5, 2020. As part of the agreement, Fedex was paid $45 to deliver the gasket.

ABC knew how important this gasket machine part was.The machine could not run without it, and every day that machine is running in the factory, ABC can make $100,000 profit. Therefore before making its contract with Fedex, ABC told Fedex about the $100,000 it would earn (or lose) with the presence (or absence) of the gasket to make the machine run. Fedex said it understood the situation.

Fedex delivered the gasket at 5:00pm on Friday, August 7, 2020, two days (48 hours) late.ABC is very upset, and is threatening to sue Fedex for $200,000.Fedex believes that ABC cannot successfully sue for $200,000, since Fedex was only paid $45 to deliver the gasket.

IRAC method:issue rules application conclusion