Smith's of Dallas placed a $10,000 order for dresses, F.O.B. Dallas from Magnifique Manufacturing Co. in New York, for their October 1 Fall Showing. The dresses were to be shipped at a cost of $300 to the seller. In New York, Magnifique dresses were the rage, but the boom had not yet reached Dallas. By September 15, Smith's realized that the shop could not afford all of these dresses and called Magnifique to cancel the contract. On September 15, the market price for the dresses in New York was $9,000 and in Dallas, $5,000. On October 1, the market price had
risen to $9,500 in New York and to $7,000 in Dallas. What may Magnifique do? What are the alternatives for damages from Smith's?

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The Answer of Smith's of Dallas placed a $10,000 order for dresses, F.O.B. Dallas from Magnifique Manufacturing Co. in New York, for their October 1 Fall Showing. The dresses were to be shipped at a cost of $300 to the seller. In New York, Magnifique dresses were the rage, but the boom had not yet reached Dallas. By September 15, Smith's realized that the shop could not afford all of these dresses and called Magnifique to cancel the contract. On September 15, the market price for the dresses in New York was $9,000 and in Dallas, $5,000. On October 1, the market price had
risen to $9,500 in New York and to $7,000 in Dallas. What may Magnifique do? What are the alternatives for damages from Smith's?

Smith's of Dallas Placed a $10,000 Order for Dresses, F