Asked by Sophia Michelle on May 04, 2024
Verified
Which of the following damages may a seller receive if the seller resells goods to another buyer when the original buyer is in breach of contract?
A) The difference between the resale price and the contract price,plus incidental damages and minus expenses saved.
B) The difference between the resale price and the contract price.
C) The difference between the resale price and the contract price,minus expenses and without any allowance for incidental damages.
D) The difference between the resale price and the contract price,plus incidental damages,with no deduction for expenses saved.
E) Nominal damages.
Resale Price
The amount for which an item is sold again on the market after it has been purchased once from the original seller or manufacturer.
Contract Price
The sum agreed upon by the parties involved in a contract for the sale of goods or services.
Incidental Damages
Compensation for commercially reasonable expenses incurred as a result of the other party's breach of contract.
- Acquire knowledge on the solutions accessible for contract violations, encompassing compensation for foregone earnings and the principle of cover.
Verified Answer
NF
Nicole FranciniMay 08, 2024
Final Answer :
A
Explanation :
Sellers are allowed to resell or dispose of the goods when the buyer is in breach and the goods have not yet been delivered.The seller then holds the buyer liable for any loss.Uniform Commercial Code Section 2-706 allows the seller to recover the difference between the resale price and contract price,plus incidental damages and minus expenses saved.
Learning Objectives
- Acquire knowledge on the solutions accessible for contract violations, encompassing compensation for foregone earnings and the principle of cover.