Ramblin' Country Stables contracts to buy 1,000 horseshoes from Blacksmith,Inc.,for $1 per shoe.When the market price decreases to 50 cents per shoe,Ramblin' refuses to go through with the deal.Blacksmith can recover
A)$1,500.
B)$1,000.
C)$500.
D)$0.

Question

Quizplus · Accepted Answer

Ramblin' breached the contract by refusing to go through with the deal. Blacksmith could sue Ramblin' for the difference between the contract price ($1 per shoe) and the market price ($0.50 per shoe) for 1,000 shoes, which would be $500. Therefore, the correct answer is C.

Ramblin' Country Stables Contracts to Buy 1,000 Horseshoes from Blacksmith,Inc