On June 1, Lauto Inc contractually agreed to buy a Pupmobile LX from Dos Motors Ltd for $25 000.Payment of the price and delivery of an appropriate vehicle were scheduled to occur on July 15.On July 1, however, Dos informed Lauto that it had carelessly crushed its only Pupmobile LX with an industrial-sized garbage bin.Dos apologized profusely and explained that it did not have another one in stock.It also informed Lauto that, because a Pupmobile LX had recently appeared in a highly successful movie, such cars were in great demand."If you still want one," said the manager at Dos, "you had better act quickly.I'll expect that they will start to go up in value very quickly." Between July 1 and July 10, Lauto could have agreed to purchase a Pupmobile LX from another dealer for $30 000.Nevertheless, Lauto waited until July 11 before buying a Pupmobile LX from Tertius Motors Ltd for $35 000.By July 15, the market value of such vehicles had increased to $40 000.A court would probably order Dos to pay Lauto

Question

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A court would likely order Dos to pay Lauto $5,000, which represents the difference between the contract price ($25,000) and the price Lauto paid to acquire a similar vehicle from Tertius Motors Ltd ($35,000). This amount is intended to put Lauto in the position it would have been in had the contract been performed as agreed.

On June 1, Lauto Inc Contractually Agreed to Buy a Pupmobile