Monroe Hardware contracted to purchase 20 alarm clocks from Clocks Inc., a clock manufacturer. One week before delivery, Monroe Hardware notified Clocks Inc. that it was canceling its contract because it (Monroe Hardware) was overstocked with clocks. Which of the following is a remedy available to Clocks Inc. in this scenario?
A) Clocks Inc. must attempt to resell the clocks to another buyer before it can recover damages from Monroe.
B) Clocks Inc. must attempt delivery of the goods before it can sue Monroe for damages.
C) Clocks Inc. may recover the difference between the contract price of the clocks and the current market price of the clocks.
D) Clocks Inc. can recover the purchase price from Monroe even if resale is possible.

Question

Quizplus · Accepted Answer

In this scenario, Clocks Inc. may recover the difference between the contract price of the clocks and the current market price of the clocks. When the buyer refuses to accept goods that conform to the contract or repudiates the contract, the seller may recover as damages the difference between the contract price and the market price at which the goods are currently selling.

Monroe Hardware Contracted to Purchase 20 Alarm Clocks from Clocks