Patty, a buyer, breaches her contract with Joanna. Joanna resells the goods to Shaun after Patty breaches the contract, who gets to keep any profits made on the resale?

Question

Quizplus · Accepted Answer

When a buyer breaches a contract, the seller, in this case, Joanna, is entitled to resell the goods. Any profits made from this resale belong to the seller, as they are a way to mitigate the losses caused by the breach. The Uniform Commercial Code (UCC), which governs sales of goods, allows for this action and does not require the profits to be shared with the breaching party or prohibit making a profit on resold goods.

Patty, a Buyer, Breaches Her Contract with Joanna