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Cynthia orders 100 shirts in a variety of colors for her screenprinting business from Juan, a shirt supplier. Before Juan ships the shirts, Cynthia calls

Cynthia orders 100 shirts in a variety of colors for her screenprinting business from Juan, a shirt supplier. Before Juan ships the shirts, Cynthia calls him to inform him that she is going out of business and no longer needs the shirts. Juan decides to resell the 100 shirts at public auction.

What further remedy does Juan have in this scenario?

  • Since Juan is reselling the shirts at public auction and they are not a perishable good, he must notify Cynthia of the public sale and allow her to bid if she wishes.
  • Juan may sell the shirts at public auction without notifying Cynthia, since she is in breach of contract.
  • If Cynthia becomes aware of the public auction, Juan may refuse to allow Cynthia to bid on the shirts since she is in breach of contract.
  • If Juan sells the shirts at auction for more that the original contract price, he is obligated to share the profits, less any incidental costs, with Cynthia.

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