On January 30, a company that designs and builds generators to standard industrial specifications received a telephone
Question:
On January 30, a company that designs and builds generators to standard industrial specifications received a telephone call from a buyer who ordered two generators at a price of $25,000 each. The parties agreed that delivery of the first generator would be on March 15, and the second on April 30. Payment was to be made no more than 30 days after delivery. On March 12, the company delivered the first generator, which the buyer accepted. On April 22, the company completed the second generator but had not yet notified the buyer. On April 23, the buyer, having made no payment to the company, canceled the agreement. The company brings an action against the buyer for breach of contract.
How much should the company recover in damages?
a) $25,000 only
b) nothing
c) Damages for total breach of contract for the sale of two generators, because the buyer accepted part performance.
d) Damages for total breach of contract for the sale of two generators, because the goods were made for the buyer.
Question: please explain easy/step by step how to solve this question.
Managerial Accounting
ISBN: 978-1260413984
4th edition
Authors: Stacey Whitecotton, Robert Libby, Fred Phillips