Kenco buys mobile homes from the factory and sells them to the consumer. Sometimes, it contracts to
Question:
Kenco buys mobile homes from the factory and sells them to the consumer. Sometimes, it contracts to sell a home that the factory has not yet built. It has a virtually unlimited supply of product. On September 27, Kenco Homes, Inc., and Dale and Debi Williams signed a written contract for the Williamses to buy from Kenco a mobile home that had not yet been built. The price was $39,400, with $500 down. Subsequently, Dale Williams gave Kenco a $600 check so Kenco could order an appraisal of the land on which the mobile home would be located. Before Kenco could act, Dale Williams stopped payment on the check and repudiated the transaction. His stated reason was that he “had found a better deal elsewhere.” When Dale Williams repudiated, Kenco had not yet ordered the mobile home from the factory. After Dale Williams repudiated, Kenco simply did not place the order. As a result, Kenco’s only out-of-pocket expense was a minor amount of office overhead. On November 1, Kenco sued the Williamses for lost profits in the amount of $11,133. Is Kenco entitled to recover its lost profits or just the $500 deposit? Explain.
Step by Step Answer:
Smith And Roberson Business Law
ISBN: 9780357364000
18th Edition
Authors: Richard A. Mann, Barry S. Roberts