Quimbee logo
DMCA.com Protection Status
From our private database of 18,400+ case briefs...

R.E. Davis Chemical Corp. v. Diasonics Inc.

United States Court of Appeals for the Seventh Circuit
826 F.2d 678 (1987)

R.E. Davis Chemical Corp. v. Diasonics Inc.


R.E. Davis Chemical Corp. (Davis) (plaintiff) contracted with Diasonics, Inc. (Diasonics) (defendant) to purchase medical equipment for a new facility that Davis had contracted with two physicians to establish. When the physicians breached their contract with Davis, Davis breached its contract with Diasonics and refused to accept delivery of the medical equipment. Diasonics sold the contract equipment to another purchaser for the same amount as the contract price. Davis then sued Diasonics to recover its $300,000 down payment, less $500 as provided by the Uniform Commercial Code (UCC). Diasonics agreed that Davis was entitled to return of its down payment under the UCC, but asserted that it was entitled to a setoff for any damages Diasonics incurred as result of Davis’ breach and claimed that it was entitled to damages for lost profit. The trial court found that Diasonics’ damages were limited to the difference between the contract price and the resale price, as available under Section 2-706 of the UCC, and denied damages under 2-708(2), which permits recovery of lost profit. Diasonics appealed.

Rule of Law


Holding and Reasoning (Cudahy, J.)

What to do next…

  1. Unlock this case brief with a free (no-commitment) trial membership of Quimbee.

    You’ll be in good company: Quimbee is one of the most widely used and trusted sites for law students, serving more than 496,000 law students since 2011. Some law schools—such as Yale, Vanderbilt, Berkeley, and the University of Illinois—even subscribe directly to Quimbee for all their law students. Read our student testimonials.

  2. Learn more about Quimbee’s unique (and proven) approach to achieving great grades at law school.

    Quimbee is a company hell-bent on one thing: helping you get an “A” in every course you take in law school, so you can graduate at the top of your class and get a high-paying law job. We’re not just a study aid for law students; we’re the study aid for law students. Read more about Quimbee.

Here's why 496,000 law students have relied on our case briefs:

  • Written by law professors and practitioners, not other law students. 18,400 briefs, keyed to 985 casebooks. Top-notch customer support.
  • The right amount of information, includes the facts, issues, rule of law, holding and reasoning, and any concurrences and dissents.
  • Access in your classes, works on your mobile and tablet. Massive library of related video lessons and high quality multiple-choice questions.
  • Easy to use, uniform format for every case brief. Written in plain English, not in legalese. Our briefs summarize and simplify; they don’t just repeat the court’s language.

Questions & Answers

Have a question about this case?

Sign up for a free 7-day trial and ask it

Sign up for a FREE 7-day trial