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Contracts Keyed to Barnett
Neri v. Retail Marine Corp.
Citation:
334 N.Y.S. 2d 165, 30 N.Y.2d 393, 285 N.E.2d 311 (N.Y. 1972)
ProfessorMelissa A. Hale
CaseCast™ – "What you need to know"
Facts
Neri contracted to purchase a specific model of a new boat from Retail Marine Corp. for $12,587.40. Neri increased its initial deposit of $40 to $4,250 when Retail Marine Corp. agreed to arrange an immediate delivery of the boat from the manufacturer instead of the specified four to six weeks’ delivery. Shortly after the contract was finalized, Neri informed Retail Marine Corp. that he would cancel the contract because he was about to undergo hospitalization and surgery that would make it impossible for Neri to pay for the boat. At that time, Retail Marine Corp. had already ordered and had the boat delivered, so it refused to refund Neri’s deposit.
The boat that Neri had ordered was sold four months later to another buyer for the same price. Neri argues that Retail Marine Corp. was able to recover its lost profits, while Retail Marine Corp. argues that but for Neri’s breach it would have been able to sell two boats instead of one.
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