Disputes over the value of loss of use are common. Sometimes these disputes are small such as the loss of use of a car following an auto accident. Other times, the dispute involves a much bigger piece of equipment.
For example, Asphalt Products Company (APCO) arranged to sell a used bulldozer tractor to All Star Ready Mix. The agreed sales price was $467,000. The sale was memorialized in a written “Intent to Purchase”. APCO then transferred the use of the tractor to All Star. It immediately put the tractor to use, 22 hours a day, in All Star’s concrete mixing business.
A lender gave All Star a letter of commitment that contemplated a monthly payment of $10,427.17. All Star paid the lender $10,000 in earnest money. But three months later, the financing fell through. APCO had to repossess the tractor.