Which of the following is true of damages incurred by the seller when a buyer repudiates a contract?
A) The buyer is not liable for the difference between the contract price and the market price at which the goods are currently selling.
B) The only way the seller can recover damages is by reselling the goods.
C) The seller can only recover incidental damages and not the lost revenue.
D) The seller can recover lost profit and overheads along with incidental expenses.

Question

Quizplus · Accepted Answer

If getting the difference between the contract price and the market price would not put the seller in as good a financial position as if the contract had been performed, the seller may choose an alternative measure of damages based on the lost profit and overhead the seller would have made if the sale had gone through. The seller can recover this lost profit and overhead plus any incidental expenses.

Which of the Following Is True of Damages Incurred by the Seller