contracts Flashcards
what are a seller’s damages when the buyer refuses to accept the goods or otherwise repudiates the agreement?
When the buyer refuses to accept goods or otherwise repudiates the agreement, the measure of the seller’s damages will depend on whether or not the seller resells the goods. Where, as here, the seller resells the goods, he will be entitled to the contract-resell differential, which is the difference between the contract price and the resale price. When the seller does not resell, he is entitled to the contract-market differential, or the difference between the contract price and the market value of the goods. He would also be entitled to any incidental or consequential damages, in either case. Because the contract here was for $1,000 and the tailor resold the suit for $50, he will be entitled to the difference, or $950
what are the damages for a “lost-volume” seller?
the measure of the damages is LOST PROFITS (i.e. what they have lost - i.e. if spent $200 making goods - subtract that from contract price)
