Fred's Fireplaces enters into a contract with Miguel's Patio Supply in which Miguel's agrees to purchase 20 fireplaces. Miguel fails to pay and Fred's Fireplaces sells the fireplaces to Phillips Outdoor Store instead. However, Phillips Outdoor Store pays $500 less than Miguel had agreed to pay. What rights does Fred have?
A) None because he chose to sell the goods.
B) None because he did not notify Miguel before selling the fireplaces to someone else.
C) None because Miguel did not agree to allow him to sell the fireplaces to Phillip.
D) He can sue Miguel for the entire amount Miguel was supposed to pay for the fireplaces.
E) He can sue Miguel for $500, the difference between the resale price and the contract price.

Question

Quizplus · Accepted Answer

Fred has the right to sue Miguel for the difference between the resale price and the contract price, which is $500, as this represents the loss Fred incurred due to Miguel's breach of contract.

Fred's Fireplaces Enters into a Contract with Miguel's Patio Supply