Hi, new to the forum.
I'm reviewing my Themis 2018 materials and think there was an error in a video lecture. I want to make sure I have the correct information.
Regarding MBEs, Contract and Sales, page 41, Chapter 16: Anticipatory Repudiation; Remedies: Basic Concepts, Question 167:
Seller breached. Buyer contracts with Seller for product and paid $100 up front. Seller delivers half full product. Buyer keeps product. Half full product is $60 at another seller. What are buyer's expectation damages?
The lecture said $60, but discussed different numbers in the formula so it is throwing me off.
Thanks in advance.
Themis, 2018, MBE, Contracts, Expectation Damages question Forum
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Re: Themis, 2018, MBE, Contracts, Expectation Damages question
$60 looks correct. Expectation damages are intended to put the injured party in as good a position as if the breaching party fully performed. The contract was to obtain the full product for $100. Now the non-breaching party's expenses are $160 ($100 already paid to the breaching party plus $60 to buy the missing half elsewhere). To make the non-breaching party whole, the breaching party has to pay $60. This is the amount of expectation damages.
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Re: Themis, 2018, MBE, Contracts, Expectation Damages question
Thank you very much. I wasn't finding any other scenarios involving pre-payment, which was making me think of refunds and that the amount would only be $40. You explained this perfectly for me. Thanks again.Moabit wrote:$60 looks correct. Expectation damages are intended to put the injured party in as good a position as if the breaching party fully performed. The contract was to obtain the full product for $100. Now the non-breaching party's expenses are $160 ($100 already paid to the breaching party plus $60 to buy the missing half elsewhere). To make the non-breaching party whole, the breaching party has to pay $60. This is the amount of expectation damages.