Klint Microsystems,a microprocessor manufacturer,was contracted by Zeitar Studios to manufacture specially designed microchips.Zeitar was to pay Klint $300,000 as per the contract.While the finished microchips were being shipped via a carrier,Klint was informed of Zeitar's insolvency.Klint cancelled the shipment before it was delivered.Klint then resold the chips to another studio.What right to remedy did Klint exercise when selling the microchips to another studio?

Question

Quizplus · Accepted Answer

Klint exercised its right to dispose of goods by selling the microchips to another studio after canceling the shipment to Zeitar. This right allows a seller to sell the goods in a commercially reasonable manner after a buyer has breached the contract or become insolvent. Klint may also have a right to recover damages for the breach of contract by Zeitar, but this is separate from the right to dispose of goods. The right to claim lost profits and the right to cover are not applicable in this situation.

Klint Microsystems,a Microprocessor Manufacturer,was Contracted by Zeitar Studios to Manufacture