Real Stones, Inc., and Sparkling Jewelry Stores enter into a contract for a sale of gemstones. Real Stones does not deliver. Sparkling can recover as damages the difference between

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Quizplus · Accepted Answer

Under a breach of contract, the non-breaching party is entitled to recover damages that will place it in the same economic position it would have been in had the breach not occurred. In this case, the difference between the contract price (what Sparkling Jewelry Stores agreed to pay) and the market price (what they would have paid had the contract been fulfilled) would compensate them for the loss resulting from Real Stones' failure to deliver.