Question
Buyer breached a sale of goods contract, repudiating the contract prior to delivery by Seller.The sale price for 100 items was $100,000.Included in Seller's costs
Buyer breached a sale of goods contract, repudiating the contract prior to delivery by Seller.The sale price for 100 items was $100,000.Included in Seller's costs was a transportation cost of $5,000 for a certain size truck to transport the goods to Buyer's destination.The market price for the goods had already declined significantly by the due date for delivery.When Seller learned of the breach, only half (50) of the ordered goods had been manufactured and "identified" to the contract.Seller reasonably chose not to work on the other half of the ordered goods.Seller conducted a commercially reasonable resale in good faith for the identified goods and received a sale price of $40,000.Allocated to this transaction by Seller was a transportation cost (reasonably using the same size truck) of $2,000 to the new Buyer's destination.Seller reasonably stored the unused material for several months after breach at a cost of $400 and then sold the material for scrap for $1,000.Assume $100 profit per item for this contract can be established by Seller's records.What are Seller's damages, if any, under the UCC?Support your answer, in part, by calculations following the formula in UCC 2-706 and, in part, by using the formula in UCC 2-708(2).
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