On May 1,Garage Prefabricators,Inc.,agrees to sell four portable garages to Hiway Truck Service Center.Five days later,Hiway refuses delivery and cancels the contract.Garage Prefabricators is entitled to
A)force Hiway to accept the garage.
B)recover any damages from Hiway but not resell the garage.
C)resell the garage and recover any damages from Hiway.
D)resell the garage but not recover any damages from Hiway.

Question

Quizplus · Accepted Answer

Since Hiway refused delivery and cancelled the contract within a reasonable time, Garage Prefabricators can resell the garages to mitigate their damages. They can also recover any damages from Hiway such as the cost of resale and any loss in value. This is known as the right to resale and recover damages due to a breach of contract. Option A is not possible as Hiway has already cancelled the contract. Option B is incorrect as Garage Prefabricators can also resell the garages. Option D is incorrect as they can still recover damages from Hiway.