Sam agreed to purchase and Joe agreed to sell a brand new Chrysler 300M that was displayed in "Joe's Fine Cars" showroom. But instead of delivering it to Sam, Joe sold it to another customer who offered him more money. Which of the following is the appropriate remedy in these circumstances?
A) No remedy
B) Rescission
C) Injunction
D) Specific performance
E) Damages

Question

Quizplus · Accepted Answer

The appropriate remedy in these circumstances is damages. Sam can sue Joe for the amount of money he lost because of Joe's breach of contract (i.e. the difference between the amount Sam agreed to pay for the Chrysler 300M and the amount he would have to pay for a similar car elsewhere). Rescission, injunction, and specific performance are not appropriate remedies in this situation as the car has already been sold to another customer.

Sam Agreed to Purchase and Joe Agreed to Sell a Brand