If a buyer purchases substitute goods due to the seller's refusal to deliver the contracted goods, she can recover _________.Multiple choice question.separately the contract price and the cost price of the substituted goodstwice the cost price of the substitute goods from the sellerthe difference between the contract price and the cost of the substitute goods from the sellertwice the contract price from the seller
Question
If a buyer purchases substitute goods due to the seller's refusal to deliver the contracted goods, she can recover _________.Multiple choice question.separately the contract price and the cost price of the substituted goodstwice the cost price of the substitute goods from the sellerthe difference between the contract price and the cost of the substitute goods from the sellertwice the contract price from the seller
Solution
The correct answer is: the difference between the contract price and the cost of the substitute goods from the seller.
Here's why:
In a situation where a seller refuses to deliver the contracted goods, the buyer may choose to purchase substitute goods. In this case, the buyer is entitled to recover the difference between the contract price (the price agreed upon in the original contract with the seller who refused to deliver) and the cost of the substitute goods. This is because the buyer should not have to bear the additional cost caused by the seller's breach of contract.
This is not about recovering twice the cost price of the substitute goods or twice the contract price from the seller, but about making the buyer whole - putting them in the position they would have been in if the original contract had been fulfilled.
So, the buyer can recover the difference between the contract price and the cost of the substitute goods from the seller.
Similar Questions
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An injured buyer can recover consequential damages from a seller by showing that: ________.Multiple choice question.the seller knew (or should have known) she could have prevented damages by obtaining substitute goodsthe seller made (or should have made) profits out of the sales contractthe contract price is higher than the cost price of the substitute goodsthe seller knew (or should have known) the buyer would suffer damages if the seller failed to perform
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