Savannah agreed to buy a car from Rhett for $10 000.Savannah paid the price,but Rhett refused to perform the contract after he discovered that the vehicle was really worth $17 000.At the time that the contract was created,neither he nor Savannah was aware of the vehicle's actual value.Which of the following statements is TRUE?
A) The court will likely award expectation damages based on the profit that Rhett expected to receive under the contract.
B) The court will likely award specific performance because of the significant difference between the contract price and the actual value of the car.
C) Savannah cannot get expectation damages for $17 000 because she did not expect to receive a car of that value when she entered into the contract.
D) Savannah will be entitled to receive a total of $7000 in expectation damages because that is the profit that she should have received under the contract.
E) Even though he breached the contract,Rhett may not be liable for the full difference between the contract price and the market value if Savannah could have purchased a similar car from a third party for less than $17 000.
Correct Answer:
Verified
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