Mulligan Domestics Co.breached a contract by refusing to accept its order for 60 bolts of fabric from Wellington Mills,although the fabric met the contract specifications.In this situation,Wellington Mills
A)has at least four remedies under the UCC.
B)may resell the fabric to someone else and,if it sues Mulligan,Wellington Mills will be awarded the full contract price.
C)may choose not to resell the fabric and settle for the difference between the contract price and the market value.
D)would be awarded consequential damages by most courts.

Question

Quizplus · Accepted Answer

Under the UCC, if a buyer breaches a contract by refusing to accept conforming goods, the seller has the option to resell the goods to someone else and sue the original buyer for the difference between the contract price and the resale price (UCC 2-706). Thus, in this situation, Wellington Mills may choose not to resell the fabric and settle for the difference between the contract price and the market value. This is because Mulligan Domestics Co. breached the contract by refusing to accept the conforming goods, and Wellington Mills is entitled to recover its damages. However, Wellington Mills cannot recover consequential damages unless it proves that such damages were foreseeable at the time the contract was formed.