On September 1, Mira agreed to sell a shipment of beans to Marco for a total price of $20 000.He paid the price immediately and the contract required her to make delivery on December 1.She failed to do so.By that time, the market value of the beans had increased to $27 000.Although Marco could have arranged to receive a shipment of beans from another supplier almost immediately, he actually waited three weeks before entering into such a contract with Hector.By that time, the market value of the beans had increased to $30 000.Marco is entitled to expectation damages of $30 000 as long as a reasonable person could have predicted the full price increase on December 1.

Question

Quizplus · Accepted Answer

Expectation damages aim to put the injured party in the position they would have been in if the contract had been performed. However, Marco's entitlement to damages would typically be calculated based on the market value of the beans at the time of the breach (December 1), which was $27,000, not the later value of $30,000. Additionally, Marco's duty to mitigate damages by seeking a replacement in a timely manner could affect the amount of damages awarded.

On September 1, Mira Agreed to Sell a Shipment of Beans