Question
Michelle pays $12,000 down on an electric car which Cars'R'Us had agreed to sell to her for $64,000. Michelle then repudiates the contract. Cars'R'Us sells
Michelle pays $12,000 down on an electric car which Cars'R'Us had agreed to sell to her for $64,000. Michelle then repudiates the contract. Cars'R'Us sells the electric car to Larry in good faith for $60,000. Michelle may recover from Cars'R'Us:
A. her $12,000 down payment since Cars'R'Us's contract with Larry created a novation anddischarged any duty Michelle had to pay anything toward the electric car
B. $8,000 in restitution, which represents Michelle's $12,000 down payment less the $4,000 in damages Cars'R'Us sustained because of Michelle's breach.
C. nothing, since she was the one who repudiated the contract.
D. only a nominal amount
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