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Multiple Choice

What remedy may a seller pursue if the buyer breaches by not accepting the goods?

When a buyer breaches by not accepting the goods, the seller is entitled to mitigate by reselling them. The standard remedy under the sale-of-goods rules is for the seller to sell the goods in a commercially reasonable manner and sue the buyer for damages. The damages are usually measured as the contract price minus the resale price, plus incidental and other reasonable costs caused by the breach. This approach aims to put the seller in the position they would have been in if the buyer had performed. Specific performance to force the buyer to take delivery is not the usual route for ordinary goods; it’s only appropriate in rare cases where the goods are unique or where damages are inadequate. Reclaiming the contract price from the buyer isn’t the typical measure of remedies here, since damages are tied to the shortfall between the contract price and what the seller can obtain on resale. Canceling the contract and returning goods doesn’t address the remedy of recouping losses by reselling, which is the primary path the seller may pursue when the buyer fails to accept.

When a buyer breaches by not accepting the goods, the seller is entitled to mitigate by reselling them. The standard remedy under the sale-of-goods rules is for the seller to sell the goods in a commercially reasonable manner and sue the buyer for damages. The damages are usually measured as the contract price minus the resale price, plus incidental and other reasonable costs caused by the breach. This approach aims to put the seller in the position they would have been in if the buyer had performed.

Specific performance to force the buyer to take delivery is not the usual route for ordinary goods; it’s only appropriate in rare cases where the goods are unique or where damages are inadequate. Reclaiming the contract price from the buyer isn’t the typical measure of remedies here, since damages are tied to the shortfall between the contract price and what the seller can obtain on resale. Canceling the contract and returning goods doesn’t address the remedy of recouping losses by reselling, which is the primary path the seller may pursue when the buyer fails to accept.