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Greensburg Metal Manufacturing Company made school furniture. In 1985, Woolrich Company entered into a contract with Greensburg to be the latter's exclusive distributor of school furniture in the metropolitan New York area. Under this contract, Greensburg made a number of shipments of furniture to Woolrich, which Woolrich resold to the New York Board of Education. The distributorship contract between Woolrich and Greensburg was to end December 1987, but Greensburg, without legal justification, terminated the contract in February 1986.
Just before Greensburg breached the contract, it made a large shipment of furniture to Woolrich that amounted to about half the furniture that Woolrich had just ordered from Greensburg. Much of the furniture was shipped in damaged condition, requiring Woolrich to repair it extensively before it could be resold. In addition, Woolrich was forced to purchase a large quantity of school furniture on the open market to satisfy a current contract with the New York Board of Education. Finally, Woolrich had to rent a small amount of furniture in order to satisfy its contractual obligations to the New York Board of Education. Which of these expenditures, if any, can Woolrich recover from Greensburg? Are there any additional losses Woolrich could claim?
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