Bobby Fisher Inc. (BFI) agreed in writing to purchase 25,000 plastic pellets from Zero Inc. for use in BFIs limited-edition chess set. The agreement states the following: FOB Zero Inc., delivery date of no later than 07/31/19, payment of $25,000 due 2/10 net 30 after invoice received, and defective pellets cannot exceed 1% of the total shipped. Due to past dealings, Zero knows that BFI will not tolerate any exceptions to the defective provision and that significant defects will hinder BFIs ability to operate and meet all demands.

Assume Zero refused to deliver the pellets, notifying BFI 2 days before delivery date. It cited increased costs as its justification. Zero knew that BFI needed the pellets for a special order made by Chess Masters of the World, Inc. BFI expected to make a profit of $15,000 on the order.

For this question, assume BFI chose not to cover. Market price on 07/29/19 at Zeros location was $40,000. What is BFIs measure of damages? Would it be reasonable to award BFI market damages if it could have covered for $26,000?