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

Locke (D) entered into a contract with Mistletoe (P) to perform pickup and delivery for P at various locations in Texas. D had to enter into certain investments and expenditures in order to carry out her end of the deal. D spent $3500 for materials, $1000 for dirt work, and borrowed $15,000 to buy two vehicles. The contract was to be for one year from October 1, 1984. P notified D that it would cancel the contract effective June 15, 1985. D closed the business and then sold the vehicles and suffered a loss of $3,000 and still owed $15,000 on the loan. The jury gave the verdict to D for $19,400, and the court added prejudgment interest and attorney fees. P appealed.

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