Andrews Manufacturing Company has repudiated its contract to sell 500 computers to a computer store.What recourse does the retailer have under the circumstances?
A) It must await the seller's performance.
B) It can "cover" by procuring goods elsewhere and then sue for any difference between the cost of cover and the contract price, plus incidental and consequential damages less expenses saved by the breach.
C) It can recover punitive damages.
D) It can seek specific performance.

Question

Quizplus · Accepted Answer

Under the Uniform Commercial Code (UCC), when a seller breaches a contract for the sale of goods, the buyer has the right to "cover" by purchasing the goods elsewhere and can then sue the original seller for the difference between the cost of cover and the contract price, along with incidental and consequential damages, minus any expenses saved due to the breach. This is a common remedy in cases involving goods because it allows the buyer to mitigate damages while still holding the breaching seller accountable.

Andrews Manufacturing Company Has Repudiated Its Contract to Sell 500