Quill contracts to buy an oven from Restaurant Appliances Inc. for $5,000, but the seller fails to deliver. Quill buys a similar oven from another dealer for $6,500. Quill's measure of damages is
A) $5,000.
B) $1,500.
C) $1,500, plus any additional expense to obtain the oven.
D) $6,500.

Question

Quizplus · Accepted Answer

Quill's measure of damages is the difference between the contract price and the market price at the time of the breach, plus any additional expenses reasonably incurred in obtaining substitute goods. In this case, the contract price was $5,000, but Quill had to pay $6,500 for a similar oven from another dealer, resulting in a difference of $1,500. Quill is also entitled to any additional expenses incurred in obtaining the substitute oven, such as delivery or installation fees. Therefore, the best choice is C.

Quill Contracts to Buy an Oven from Restaurant Appliances Inc