Andrew contracts Goldflour Breads to purchase 10 pounds of flour at $4 per pound.The contract states that delivery is to occur on July 1.On this date,the market price of flour is $6 per pound.Goldflour Breads is unable to make the delivery on July 1.Apart from incidental and consequential damages,less expenses saved,the damages Andrew can recover from Goldflour Breads is ________.

Question

Quizplus · Accepted Answer

The damages Andrew can recover are calculated based on the difference between the contract price and the market price at the time of delivery. Since the contract price was $4 per pound and the market price was $6 per pound for 10 pounds, the difference is $2 per pound. Therefore, for 10 pounds, Andrew can recover $2 x 10 = $20.

Andrew Contracts Goldflour Breads to Purchase 10 Pounds of Flour