Question
Seller delivers 50 items to a carrier under a destination contract (where Seller is responsible for delivery to Buyer's destination) calling for a cumulative delivery
Seller delivers 50 items to a carrier under a "destination" contract (where Seller is responsible for delivery to Buyer's destination) calling for a cumulative delivery of 100 items.Buyer had made a down payment on the $75,000 contract price of $25,000 and was to make a progress payment of an additional $25,000 after the first delivery and prior to the second delivery and a final payment of $25,000 when final delivery was made.Buyer accepted the initial 50 items, thereby assuming the risk of any loss to them.Thereafter, fire destroyed the 50 items and Buyer did not make the progress payment or any other payments.Seller completed the remaining 50 items, "identified" them to the contract, and sued for the unpaid contract price of $50,000 when Seller was unable to resell the goods after a reasonable effort.After receiving a judgment against Buyer for $50,000, Seller found an opportunity to sell the final 50 items for $30,000.Sale costs were $1,000.Seller's manufacturing costs for the final 50 items were $25,000 and additional storage costs were $500.How much, if anything, must Buyer pay Seller on the court judgment of $50,000? Support your answer by reference to appropriate section(s) of the UCC.
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