Andrews Manufacturing Company has repudiated its contract to sell 500 computers to a computer store.What recourse does the retailer have under the circumstances?

Question

Quizplus · Accepted Answer

The retailer can "cover" by procuring goods elsewhere and then sue for any difference between the cost of cover and the contract price, plus incidental and consequential damages less expenses saved by the breach. This is the best option for the retailer as it allows them to mitigate their losses by purchasing the goods elsewhere and then recovering the difference between the contract price and the cost of cover, plus any incidental or consequential damages they may have suffered as a result of the breach. The other options - awaiting the seller's performance, recovering punitive damages, or seeking a security interest in the computers - are unlikely to be effective remedies in this situation.

Andrews Manufacturing Company Has Repudiated Its Contract to Sell 500