Business Law 11th Edition by Kenneth Clarkson,Roger LeRoy Miller,Gaylord Jentz,Frank Cross

Exercise 12

Remedies of the Seller or Lessor Ames contracts to ship to Curley one hundred Model Z television sets. The terms of delivery are F.O.B. Ames's city, by Green Truck Lines, with delivery on or before April 30. On April 15, Ames discovers that because of an error in inventory control, all Model Z sets have been sold, and the stock has not been replenished. Ames has Model X, a similar but slightly more expensive unit, in stock. On April 16, Ames ships one hundred Model X sets, with notice that Curley will be charged the Model Z price. Curley (in a proper manner) rejects the Model X sets when they are tendered on April 18. Ames docs not wish to be held in breach of contract, even though he has tendered nonconforming goods. Discuss Ames's options.