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Widgets Are Manufactured by Very Few Companies and They Are

Question 18

Multiple Choice

Widgets are manufactured by very few companies and they are often difficult to locate. On January 1, Alpha Corp contractually agreed to sell a widget to Beta Inc. Beta paid the total purchase price of $30 000 immediately. The contract required Alpha to deliver the widget on April 1. On March 25, Alpha contacted Beta and announced that it would not be able to deliver the widget. By that time, the cost of a widget had increased to $50 000. On March 28, Beta paid $2000 to an independent firm to locate an alternative widget supplier. That firm suggested Gamma Ltd. On March 30, Beta paid
$50 000 to Gamma Ltd to deliver a widget by April 1. A court would probably order Alpha to pay Beta


A) $22 000.
B) $30 000.
C) $52 000.
D) $50 000.
E) $2000.

Correct Answer:

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