Buyer agreed to pay Farmer $15/cwt. for 5,000 cwt. of chipping potatoes ($75,000 total). Buyer accepted and
Question:
Buyer agreed to pay Farmer $15/cwt. for 5,000 cwt. of chipping potatoes ($75,000 total). Buyer accepted and paid for 1,000 cwt. When the price of potatoes fell to $13/cwt., Buyer repudiated the contract with Farmer and started buying other, cheaper potatoes. At that time, Farmer had 6,000 cwt. of potatoes in the field available for delivery. Farmer sold 2,000 cwt. to a different buyer at $13.00 per cwt. Despite diligent efforts, Farmer could not find any Buyer willing to purchase the remaining 4,000 cwt. of the potatoes. In an action against Buyer, Farmer should recover:
a. $60,000, the price of the potatoes Buyer refused to accept.
b. $34,000, the price of potatoes minus the amount Farmer received by reselling some of the potatoes to others.
c. $8,000, the price of the potatoes minus the fair market value of the unsold potatoes.
d. Nothing, because Farmer failed to minimize the loss by trying harder to sell the remaining potatoes.
Smith and Roberson Business Law
ISBN: 978-0538473637
15th Edition
Authors: Richard A. Mann, Barry S. Roberts