Nancy orally contracted to buy a boat from Retail Marine, a

specialty boat dealer who manufactures and sells custom order boats. Nancy placed a ten percent

down payment of $14,250, but then became very ill, and decided not to go through with the boat

sale because her failing health would not allow her the ability to use the boat. By the time she

notified the dealer of the repudiation, the boat had been manufactured and was ready for

delivery. Retail Marine stored the boat and started looking for a new buyer. The cost to store the

boat was $2,600. The seller would have made $12,500 profit on the sale to Nancy. During the

time the boat is stored the boat was destroyed by a fire and was a total loss. Nancy sues for the

return of her $14,250 down payment, and the seller counter sued for the contract price, lost

profits, and incidental damages. What issues and how should the suit between Nancy and Retail

Marine be resolved?