Owen and Pablo enter into a contract for a sale of irrigation equipment. Pablo pays, but Owen does not deliver. Pablo can normally recover as damages the difference between
A) any loss avoided and any profit gained.
B) the actual price and the hoped-for price.
C) the contract price and the market price.
D) the current prices in the parties' locations.

Question

Owen and Pablo enter into a contract for a sale of irrigation equipment. Pablo pays, but Owen does not deliver. Pablo can normally recover as damages the difference between
A) ​any loss avoided and any profit gained.
B) ​the actual price and the hoped-for price.
C) ​the contract price and the market price.
D) ​the current prices in the parties' locations.

Quizplus · Accepted Answer

The normal measure of damages for a breach of contract in a sale of goods is the difference between the contract price and the market price at the time and place of delivery. This means that Pablo can recover the amount that he would have gained if Owen had fulfilled his end of the contract. Option A is too broad and Option B is not a commonly accepted measure of damages. Option D is irrelevant as it does not address the issue of damages.

Owen and Pablo Enter into a Contract for a Sale