ABC Ltd. was in a contract to supply 1,000 widgets @$1.00 each to XYZ Ltd by a

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ABC Ltd. was in a contract to supply 1,000 widgets @$1.00 each to XYZ Ltd by a specified date. Due to a mechanical failure at its factory, ABC Ltd. cannot fill the order on time and has advised XYZ Ltd. to expect delivery to be two months late. XYZ Ltd. planned to use the widgets as components in a machine that it had already contracted to sell for an anticipated profit of $30 000. It cannot wait the two months without jeopardizing that sale. What is XYZ Ltd. obligated to do now? What if the only other source for replacement widgets is from a manufacturer who is proposing to sell at an exorbitant sum? What other costs can XYZ Ltd. seek to recover?
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Canadian Business & the Law

ISBN: 978-0176501624

4th edition

Authors: Dorothy DuPlessis, Shannnon o'Byrne, Steven Enman, Sally Gunz

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