Which of the following is the usual measure of damages for a breach of a sales contract?
A) the difference between the contract price and the market price of the goods at the time and place the goods were to be delivered
B) the difference between the contract price and the market price of the goods at the time the contract was entered into
C) the difference between the contract price and the market price of the previous contract entered into between the parties immediately prior to the contract that was breached
D) the difference between any liquidated damages provision and the amount of actual damages
E) the difference between the market price and the liquidated damages provision

Question

Quizplus · Accepted Answer

The usual measure of damages for a breach of a sales contract is the difference between the contract price and the market price of the goods at the time and place the goods were to be delivered. This is known as the "cover" or "substitute" measure of damages, where the non-breaching party is compensated for the cost of finding a replacement for the goods that were not delivered.

Which of the Following Is the Usual Measure of Damages