Hydro Source Company contracts to sell pumps,tanks,and water storage systems to InFlo Irrigation,Inc. Before the goods are delivered,InFlo indicates that it will not be able to pay. Hydro Source can
A)forceInFlo to accept and pay for the goods.
B)requireInFlo to find a buyer for the goods.
C)resell the goods and recover any damages from InFlo.
D)do nothing.

Question

Quizplus · Accepted Answer

Hydro Source can resell the goods and recover any damages from InFlo. This is often referred to as "cover" under the Uniform Commercial Code. Hydro Source can resell the goods in a commercially reasonable manner and recover the difference between the contract price and the resale price from InFlo. This is an efficient way to minimize damages and move on from a bad deal. Option A is not feasible as a seller cannot force a buyer to accept and pay for goods. Option B is also not practical as it puts the burden of finding a buyer on InFlo. Option D is not a viable choice for a business as it would result in a loss of revenue.

Hydro Source Company Contracts to Sell Pumps,tanks,and Water Storage Systems