Asked by Jonathan Richardson on Jun 19, 2024
Verified
Sometimes, when a buyer breaches a contract for a sale of goods and the seller has not yet produced the goods, the seller can recover the lost profits.
Lost Profits
Potential earnings that were not realized due to a wrongful act or breach of contract.
Buyer Breaches
Situations where the buyer fails to fulfill their contractual obligations, potentially leading to legal consequences or contract termination.
- Become familiar with the legal doctrines surrounding the restitution for breaches of agreements in the commerce of goods, employment relations, and real estate dealings.
Verified Answer
CC
Cedriana Cee steckaJun 23, 2024
Final Answer :
True
Explanation :
Under the Uniform Commercial Code (UCC), if a buyer breaches a contract and the seller has not yet produced the goods, the seller may recover the lost profits as damages, provided these profits can be reasonably estimated. This is designed to put the seller in as good a position as if the contract had been fully performed.
Learning Objectives
- Become familiar with the legal doctrines surrounding the restitution for breaches of agreements in the commerce of goods, employment relations, and real estate dealings.