John needs a new car and goes to the local dealer for Worldwide Motors,a global car manufacturer.John negotiates a deal with the local dealer to buy a new midsize model,the Albatross,for $22,000.The dealer cost on this car is $19,000.John then decided against the Albatross and breached the contract.Later the dealer sold this car to another customer for $21,600.The dealer also incurred $200 in costs connected with John's canceled order.Assuming that the dealer can get as many Albatrosses as it wants,how much can it recover in damages from John? Assume that John has not paid anything to the dealer.

Question

Quizplus · Accepted Answer

The dealer can recover the difference between John's contract price ($22,000) and the price at which the dealer resold the car to another customer ($21,600), which is $400. Additionally, the dealer can recover the costs incurred from John's canceled order, which is $200. Therefore, the total damages the dealer can recover from John is $400 + $200 = $600.

John Needs a New Car and Goes to the Local