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This section contains the nature of the case and procedural background.

D contracted with P for a year's supply of coal at a contract price of $3.40 per ton, delivered. On October 22, 1920, while the contract was in force, P had in its possession a carload of coal of the same kind and quality as that contracted for by D. By mutual mistake of the carrier and agents of D, that coal was delivered to D and consumed. This carload of coal at the time and place of its delivery was of the market value of $6.85 per ton. D discovered the mistakes and paid to the consignee of the coal the market value thereof. P then demanded that it be reimbursed for that same amount from D. D refused to pay and P sued D. The court found against D, but limited recovery to $3.40 per ton, the price of the year's supply of coal as per the contract. P appealed.

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