Silverman v. Caddo Gas & Oil Co. - 127 La. 928, 54 So. 289 (1911)

Rule:

To recover damages the plaintiff must begin by showing that he has complied with the terms of the contract. A party cannot claim damages for the nonperformance of a contract as to which he himself is in default.

Facts:

Plaintiff seller filed suit claiming that the buyer breached an agreement to buy 10,000 barrels of oil. In response the defendant buyer argued that the seller had admitted his inability to deliver on the contract and had been released from its obligation. The district court ruled in favor of the defendant buyer. The plaintiff seller appealed. 

Issue:

Under the circumstances, could the plaintiff seller claim damages for the alleged breach of contract by the defendant buyer? 

Answer:

No.

Conclusion:

On review, the court affirmed the judgment in favor of the buyer. In reaching its conclusion, the court held that the seller could not prove damages where it was established that he could not comply with the contract. According to the court, in order to recover damages, the plaintiff must begin by showing that he has complied with the terms of the contract. A party cannot claim damages for the nonperformance of a contract as to which he himself was in default.