Al agrees to sell goods to Betty for a contract price of $3,000 due on delivery. Betty wrongfully rejects the goods and refuses to pay anything. Al resells the goods in strict compliance with the Code for $2,000. He incurs incidental damages for sales commissions of $200 but saves $150 in expenses because of the resale. Al is entitled to recover $1,050 from Betty.

Question

Business

Savanna Maxwell

19 October, 10:25

Al agrees to sell goods to Betty for a contract price of $3,000 due on delivery. Betty wrongfully rejects the goods and refuses to pay anything. Al resells the goods in strict compliance with the Code for $2,000. He incurs incidental damages for sales commissions of $200 but saves $150 in expenses because of the resale. Al is entitled to recover $1,050 from Betty.

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Answers (1)

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Hana · Answer 1

True

Explanation:

Since there is an agreement between AI and Betty and Betty did not honour the agreement which is even wrong, AI is entitled to recover $1,050 from Betty.

The $1,050 is derived by: the difference between the agreed price and the resale price, plus the incidental damages incurred during resale minus the amount saved in expenses.

That gives us: ($3,000 - $2,000) + $200 - $150

= $1,000 + $200 - $150

= $1,050.

Cheers.