Exam 22: Remedies for Breach of Sales Contracts

Under the Uniform Commercial Code (UCC), which of the following remedies is available to both buyers and sellers?

When the seller is rightfully claiming for the buyer's rejection or repudiation, the seller can recover the difference between the contract price and the market price or:

When the goods covered by a contract are unique and it is not possible for a buyer to obtain substitute goods, the buyer is entitled to _____ of the contract.

The Uniform Commercial Code (UCC) provides that a lawsuit for breach of a sales contract must be filed within three years after the breach occurs.

Bev ordered an alabaster-colored mink coat from Poe's Furs. The coat had been specially made because she required an unusually large size and had requested a particular styling. The coat cost was $5,500, of which Bev paid $250. Several months later, she decided that she did not want the coat and canceled the order even though Poe's Furs had completed the coat. Poe's Furs then filed a suit for the balance of the purchase price. What can Bev argue in defense?

If the parties agree on the amount of damages that will be paid to the injured party if the other party fails to perform, this amount is known as illusory damages.

If the buyer "covers," the buyer can recover as damages from the seller the difference between the breached contract price and the cost of the substituted goods.

When a buyer covers, he or she may recover from the seller the:

When a buyer breaches a contract, the seller has the right to cancel the contract.

Explain the buyer's right to specific performance when the seller breaches a contract for the sale of goods.