contracts #3 analyze case and damage claims if any

On August 5th, George  from Phil’s Trading Co. in Park Slope, NY called Harry’s Printers in  Ithaca, NY to ask about pricing and delivery for an 2,500 black t-shirts  with the phrase “P.S. I Love You” emblazoned on the front and “Park  Slope New York” written on the back.  Phil’s has sold these shirts  before and found them popular, but only among Park Slope residents.   Harry says he can print and deliver then to Phil’s for $5.00 per shirt,  payable 60 days after delivery.
On August 6th,  George sends Harry a purchase order for the 2,500 t-shirts which states  “Price – $5.00 per shirt.  Delivery – FOB Acme Supply House., Park  Slope, NY.  Payment – 60 days following delivery.
On August 8th  Harry’s sends George a document labeled Confirmation of Order” that  said, in relevant part, “this confirms your order for 2,500 Shirts at a  price of $5.00, FOB Harry’s Printers, Ithaca, NY”
On August  25, Harry’s ships the 2,500 t-shirts to Phil’s designated supply house  and sends Phil’s an invoice for $13,200, including  shipping costs of  $700. The shipping voucher states all charges are payable within 60 days  from date of receipt of  goods. 
On August 31, Harry hears  through the grapevine that Phil’s Trading is having serious money  problems. A friend tells Harry that Phil’s was three week’s behind on a  $50,000 account with his firm and the friend had heard they were 4  week’s behind on a $20,000 account with another supplier.
Harry  calls George and asks if what he heard was true.  George confirms it,  but tells Harry it is just a short term cash flow problem and it will  have no effect on Harry getting paid by the end of the  60 days.  Not  feeling any calmer, Harry tells George that he want’s a certified check  for the full amount in 72 hours or he is sending “some guys to Park  Slope to pick up ‘My’ shirts.”
Phil’s did not make any payment by the 72 hour deadline and on September 5th  Harry sent three large employees to Acme Supply House who, not wanting  any problems, turned the shirts over to them.  The employees brought the  t-shirts back to Harry’s.  Acme sent Phil’s a bill for $300 for the  time its workers spent on the issue.
On September 15th,  Harry’s sold 1,000 of the shirt’s to Evelyn’s Gift Shop in Park Slope, a  major competitor of Phil’s, for $4.00 per shirt, FOB Ithaca, NY.  On  September 29th, Harry’s sold another 1,000 shirts to Evelyn’s, FOB Ithaca, NY.  The last 500 shirts are still in Harry’s warehouse.
As  it turns out, George was right.  Phil’s cash flow problems were  temporary and by October 1, all of Phil’s back bills were paid off, and  Phil’s could have paid Harry’s as well.  Phil’s sues Harry’s for breach  of contract and Harry’s counterclaims alleging breach of contract also.   Analyze the claims and defenses of the parties. Please analyze the  parties positions and possible damage claims. 

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