QUESTION 8 - International Sales of Goods

The Seller in State S contracted to deliver to the Buyer in State B 2,000 barrels of oil at a price of $60 a barrel and a total price of $120,000. Payment has been made by the Buyer to the Seller. When the oil arrived, 1,900 barrels complied fully with the contract description, but 100 barrels were contaminated and unacceptable. The Seller accepts he is responsible for this. Oil in comparable barrels was then available in the local market for a price of $75 a barrel. The UN Convention on Contracts for the International Sale of Goods applies to the contract.

(a) Which remedy is available to the Buyer and what amount would be payable under that remedy to the Buyer?

(b) What if the 100 barrels of oil was instead damaged by a natural disaster at sea?