Daryl owed Greenwood, a vacant tract of land in Smalltown, a suburb of Big City. Daryl learned that the Chesterton Wranglers, a professional football team, had decided to move their franchise to Big City and were looking to build a football stadium in the area. A friend on the Smalltown city council told Daryl that the Wranglers had picked a vacant tract of land in Smalltown, not far from Greenwood, as the site for their football stadium. Knowing that there were not a lot of eateries in the immediate area, Daryl decided to build a sports bar on Greenwood that would sell food and drink to fans attending the Wranglers games. Daryl entered into a valid written contract with Buildco, a local construction company, to build the sports bar for $1 million. Construction began in a timely manner on January 1, and was to be completed by September 1, the start of the Wranglers' football season.

Daryl then entered into a valid written contract with Sportsco, a company the manufactured sports-related merchandise, to produce special hats and shirts that would bear the logos of the Wranglers and Daryl's sports bar. Sportsco, knowing that it would cost them $4 per item in manufacturing costs, agreed to manufacture 5,000 hats and 5,000 shirts at $5 per item, deliverable by September 1. Daryl's plan was to sell these items to Wrangler fans as they stopped in at his sports bar.

On July 1, Daryl learned that the Wranglers had decided not to build their stadium in Smalltown, but intended to build a stadium in Burlington, another suburb of Big City located about 30 miles away. As a result, Daryl decided to scrap his plan to build the sports bar. He immediately informed Buildco that they should cease all construction on the sports bar, and informed Sportsco that he no longer wanted the hats and shirts. As of July 1, Buildco had spent $600,000 in construction costs and Sportsco had manufactured 2,000 hats and 2,000 shirts. Since Buildco had completed 60% of the work, they decided to go ahead and finished the construction of the sports bar, spending another $150,000. Upon hearing from Daryl, Sportsco immediately ceased all manufacture of the hats and shirts.

Both Buildco and Sportsco bring suit against Daryl.

1. What, if any, should be Buildco's recovery? Discuss.
2. What, if any, should be Sportsco's recovery? Discuss.