TackMaker, Inc., and Silver Stallion Stables enter into a contract for a sale of bridles, saddlery, and other equine equipment. TackMaker delivers, but Silver Stallion does not pay. TackMaker can normally recover as damages
A) any profit lost minus any loss avoided.
B) whatever amount the seller wishes to claim.
C) the purchase price plus incidental damages.
D) the market price at the place at which the seller delivered the goods.

Question

​TackMaker, Inc., and Silver Stallion Stables enter into a contract for a sale of bridles, saddlery, and other equine equipment. TackMaker delivers, but Silver Stallion does not pay. TackMaker can normally recover as damages
A) ​any profit lost minus any loss avoided.
B) ​whatever amount the seller wishes to claim.
C) ​the purchase price plus incidental damages.
D) ​the market price at the place at which the seller delivered the goods.

Quizplus · Accepted Answer

The UCC provides that a seller can recover the purchase price and incidental damages in the event that the buyer breaches the contract by failing to pay. Therefore, in this scenario, TackMaker can recover the purchase price of the goods sold (i.e. the amount that Silver Stallion was supposed to pay) as well as any incidental damages that TackMaker incurred as a result of Silver Stallion's breach (such as storage costs or shipping and handling fees). Option A, any profit lost minus any loss avoided, is a common measure of damages in contract law but is not applicable here. Option B, whatever amount the seller wishes to claim, is incorrect as damages must be reasonable and related to the breach. Option D, the market price at the place at which the seller delivered the goods, is not the correct measure of damages in this case, as it is not relevant to the seller's actual losses.

​TackMaker, Inc

TackMaker, Inc