Refused Furniture. Selina arranges to sell furniture from her furniture store to Roland for $3,000. Roland was supposed to give Selina a $500 deposit on February 1 and pay the remainder in monthly installments. Selina was to deliver the furniture by February 7. Roland did not pay Selina as promised on February 1. He asked her to wait until March 1, but she refused. She also refused to deliver the furniture. Selina was able to sell the furniture for only $2,500 because of a downturn in the economy. Roland told Selina that she had no right to withhold or sell his furniture and that he was suing. Selina incurred $100 in additional amounts in advertising costs to advertise the furniture that Roland initially purchased. Selina saved $40 in delivery costs because the subsequent purchaser picked up her own furniture. Which of the following is true regarding any deduction in damages to which Roland is entitled?

Multiple Choice

• Roland is entitled to a deduction for the delivery expenses because that was a savings to Selina.
• Roland is entitled to a deduction for the delivery expenses, because Selina breached the contract by not delivering the furniture to him and then pursuing an action for damages.
• Roland is entitled to a deduction for the delivery expenses, but only if he can establish that Selina agreed orally or in writing to deduct those in the event of a breach.
• Roland is not entitled to any deduction because he was the breaching party.
• Roland is entitled to a deduction for the delivery expenses, but only if he can establish that Selina agreed in writing to deduct those in the event of a breach.