Stanisci (defendant) owned a bowling alley. On August 15, 1958, Stanisci signed a contract with Model Vending (Model) (plaintiff), under which Stanisci would operate some of Model’s vending machines in the bowling alley for five years. Under the contract, Model had an exclusive right to merchandise sales at the bowling alley. On about July 28, 1959, Stanisci shut down the vending machines and began selling merchandise at the bowling alley by other means. On March 24, 1961, a fire destroyed the bowling alley. Model sued Stanisci for breach of contract, seeking lost profits from the date Stanisci shut down the machines through August 15, 1963, the end of the contract term. Stanisci argued that performance was impossible after the fire, limiting Model’s damages to the date of the fire. The trial court awarded Model damages of $2,507.27, accounting for lost profits from the date of the breach until the date of the fire. Model appealed.