A seller who sells goods to another buyer after the original buyer breaches the contract, may receive which of the following damages?
A) The difference between the resale price and the contract price, plus incidental damages and minus expenses saved.
B) The difference between the resale price and the contract price only.
C) The difference between the resale price and the contract price minus expenses without any allowance for incidental damages.
D) The difference between the resale price and the contract price, plus incidental damages, with no deduction for expenses saved.
E) Damages are not available because a seller has no rights to resell goods when the original buyer is in breach. The remedy is a suit for damages.

Question

Quizplus · Accepted Answer

The correct answer is A because, under the Uniform Commercial Code (UCC), when a buyer breaches a contract, the seller is entitled to the difference between the resale price and the original contract price, plus any incidental damages they incurred due to the breach, minus any expenses they saved by not having to complete the original sale. This compensates the seller for the loss while ensuring they are not unjustly enriched by the breach.

A Seller Who Sells Goods to Another Buyer After the Original