Question

S promises to sell B his car for $1,500. When B returns to pick up the car S refuses to deliver. 1) Why do Seller's breach by refusing to deliver the goods? 2) If it has been determined that the fair value of this car was $2,200 and the buyer already committed to one month's non-refundable garage space to store the car, what would be the buyer's compensatory measure of damage under UCC Article 2? 3) If the buyer already had a third party lined up to repurchase the car for $2,500 would it change your previous answer? 4) Under what circumstances might the buyer successfully sue for specific performance?

Answer 1

1. The seller's breach by refusing to sell the goods because of certain reason:

1. He might got more buyer who able to pay more than $ 1,500.

2. He might get advance payment.

3. He changed his intention of selling the car or changed his plan because of any reason.

2. When it is determined that the fair value of car is $ 2,200 and buyer committed to one month non refundable garbage space to store the car, hence the buyer compensatory measure of damage under UCC article 2 is that he may re over as non conformity of tender the loss resulting from seller's breach so as determined in any manner. Measure of breach of damages to warrant would be based on the time and place as the warranty has been provided.

3. Yes, my previous answer would be changed because the buyer compensation in this case would be more as compared to previous one. Here another party may file a sue against the buyer so buyer needs more compensation.

4. The circumstances might the buyer successfully sue for specific performance as he didn't paid the competition to the third party which is lined up in the process.