If the buyer wrongfully rejects conforming goods, what remedy is available to the seller?

If the buyer wrongfully rejects conforming goods, what remedy is available to the seller?

• A. Seek specific performance
• B. Stop performance
• C. Resell the goods and recover damages
• D. Cancel the contract

Answer: (C)

When the buyer wrongfully rejects conforming goods, the seller may treat the breach as open and can mitigate losses by reselling the goods in a commercially reasonable way. This is the remedy that the seller uses to recover value lost from the breach. The seller’s damages are measured by the difference between the contract price and the resale price, plus incidental damages such as storage or transportation costs, and this amount is reduced by any savings the seller enjoyed by not having to perform under the contract. If the resale brings in more than the contract price, there are no damages to recover, and the seller keeps the excess; if it brings less, the deficiency plus incidental damages can be recovered. This approach helps the seller recover the value of the breach without being left with unsold goods.

When the buyer wrongfully rejects conforming goods, the seller may treat the breach as open and can mitigate losses by reselling the goods in a commercially reasonable way. This is the remedy that the seller uses to recover value lost from the breach. The seller’s damages are measured by the difference between the contract price and the resale price, plus incidental damages such as storage or transportation costs, and this amount is reduced by any savings the seller enjoyed by not having to perform under the contract. If the resale brings in more than the contract price, there are no damages to recover, and the seller keeps the excess; if it brings less, the deficiency plus incidental damages can be recovered. This approach helps the seller recover the value of the breach without being left with unsold goods.