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First Principles of Business Law |
| Remedies for breach of contract |
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3. An award of damages |
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3.10. Mitigation of loss continued... |
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Read the facts and the question and then choose the best answer. A, a farmer, buys 10 kgs of Roma tomato seeds for $1000 from B, a seed merchant. A and B both know that A intends to grow and sell a crop of tomatoes. However, B fails to deliver the promised seeds to A. A finds an alternative supplier of seeds, but has to pay $1,500 for the 10 kgs he needs, and his planting is delayed by ten days. This means a late harvest but A thinks this is the best way to minimise his loss. Unfortunately, the weather cools, the crop ripens slowly and by the time they are ready for market, Roma tomatoes sell for half the price they fetched a week earlier. Is A entitled to claim damages for breach of contract to compensate for the higher price he paid for the seeds, and the lower profit he made selling the crop? |
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