Farmer Gibson ordered an irrigation pump from Sinclair Farm Supply where he has an open account. When they attempted to deliver, he refused to accept, claiming he could get a better deal elsewhere. Legally, Gibson could be charged for all damages that naturally flow from this breach. Assuming Sinclair made free deliveries and it had more pumps than customers, the damages would include

Question

Quizplus · Accepted Answer

Since Sinclair Farm Supply made free deliveries, the damages would include the expected profits, delivery charge, and a restocking charge. The expected profits would be lost due to Gibson's refusal to accept the pump, the delivery charge would still be incurred by Sinclair despite not completing the delivery, and a restocking charge could be imposed since Sinclair now has an extra pump that they may not be able to sell immediately.

Farmer Gibson Ordered an Irrigation Pump from Sinclair Farm Supply