Sale of Goods Damages

Question 1

What are the basic damages for a buyer when a seller does not deliver goods, or the buyer lawfully rejects?

Answer 1

1. The difference between the contract price and either the market price or price of replacing the goods (cover);
2. Incidental damages; and
3. Consequential damages (where applicable)

Amount of any savings the plaintiff benefitted from as a result of the breach

Question 2

What are buyers damages for nonconforming goods that the buyer accepted?

Answer 2

Nonconforming good accepted is an accepted good that breach one of the sellers warranties

Damages = value of original conforming good - value of actual good delivered + incidental ; and consequential damages

Question 3

What is required for a buyer to recover damages for a nonconforming good?

Answer 3

Buyer must give notice to the seller within a reasonable time after discovering or should have discovered the defect.

Question 4

What are incidental damages for buyers?

Answer 4

Expenses for reasonably incurred inspection, receipt, transportation, care and custody of goods rightfully rejected.

Question 5

What are the seller damages when a buyer repudiates or refuses goods ?

Answer 5

Seller can recover

1. Difference between contract price and market price, or
2. Difference between contract price and resale price of the goods

+

Incidental Only

Expenses saved because of the breach

Question 6

What is a sellers duty if a buyer repudiates or refuse to accept a conforming good?

Answer 6

Mitigate - seller is required to use good faith to secure a commercial reasonable sale for the rejected good

Question 7

If a seller loses profit in a volume sale product what are his damages?

Answer 7

The contract price with the breaching buyer - cost to the seller

Question 8

What are incidental damages for seller?

Answer 8

Expenses for storing , shipping, returning and reselling the goods because of the buyers breach.