On October 15, Madeleine contractually agreed to sell a widget to Hugh.The total price was $20 000.Hugh paid $4000 immediately and promised to pay the remainder upon delivery.Madeleine delivered the widget to Hugh on November 2, as required by the contract.He refused to accept it, however, because its market value had dropped from $20 000 to $10 000.Madeleine is entitled to receive $6000 in expectation damages.

Question

Quizplus · Accepted Answer

Madeleine had a valid contract with Hugh for the sale of the widget. Even though Hugh did not accept the widget, he still breached the contract by refusing to pay for it upon delivery. Therefore, Madeleine is entitled to expectation damages, which is the difference between the contract price ($20 000) and the market value of the widget at the time of delivery ($10 000), which is $10 000. Therefore, the statement that Madeleine is entitled to receive $6 000 in expectation damages is false, and the correct amount is $10 000.

On October 15, Madeleine Contractually Agreed to Sell a Widget