Sam contracted with Roadies Garage for customized pink seat covers on a new Porsche intended as a gift to his fiancé. Two days before the delivery was due, Sam broke off his engagement and told Roadies Garage that he was no longer interested in getting the seat covers. Which of the following is the most reasonable course of action that Roadies Garage can take?

Question

Quizplus · Accepted Answer

In this scenario, Roadies Garage should sell the uncompleted covers for their scrap or salvage value. When a buyer breaches a contract, the seller has the right to cancel the contract and to hold up his own performance of the contract. If the seller is in the process of manufacturing the goods, he can sell the uncompleted goods for their scrap or salvage value if the goods were custom made. In choosing between these two alternatives, the seller should choose the one that will minimize the loss. The purpose of this rule is to permit the seller to follow a reasonable course of action to mitigate (minimize) the damages.

Sam Contracted with Roadies Garage for Customized Pink Seat Covers