First Principles of Business Law
Remedies for breach of contract

3. An award of damages

3.2. The availability of damages as a remedy

 

 

 

Read the facts and the question and then choose the best answer.

A, a retailer, agrees to buy 100 computers from B, a wholesaler, for $20,000. Payment is to be made on delivery two weeks after the contract, but when the time comes, B tells A that he is short of stock and can only supply 50 computers for the time being. A says this is unacceptable, and instead arranges to buy 100 computers of the same kind from C for $20,000. C delivers the computers the same day.

A wants to sue B for damages for breach of contract. Is a claim for damages appropriate in these circumstances?

(a) Yes. A can sue for damages for breach of contract because B failed to deliver and A has had to get the computers from C.

(b) No. Since A has managed to get his computers from another seller, he is already in the same position as if the contract had been performed by B.

 

 

 

 

 

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