American Mechanical Corp. v. Union Machine Co. of Lynn, Inc.
Massachusetts Appeals Court
21 Mass.App.Ct. 97 (1985)
Union (defendant) backed out of its contract to buy American's (plaintiff) real estate and equipment for $135,000, knowing American was in financial distress and behind on mortgage payments; after Union's breach, American's mortgage bank foreclosed and sold the property and equipment for only $90,000 total, and the trial court, applying the traditional contract-price-versus-market-value-at-breach formula, found American hadn't proven that market value and awarded only nominal damages.
Whether, in Massachusetts, a party suing to recover damages for breach of contract may recover if the loss was reasonably foreseeable by the parties or actually within their contemplation at the time the contract was entered into.