- February 8, 2022 at 12:10 pm #648298
Gur is in breach of his contract to buy a consignment of goods from Yac. The goods cost Yac $1,000 to make and the selling price to Gur was $2,000 Yac had an offer to sell the goods to Hef instead for $1,500 but decided to refuse the opportunity.
What is the value of damages that Yac will be entitled to under the UN Convention on Contracts for the International Sale of Goods?
Ans is 500 but yac hasn’t sold goods to her at 1500 so his loss is not mitigated since he refused and his damages would be 2000 can u plz elaborate why we are comparing 2000 and 1500 when there is no sale of 1500February 8, 2022 at 6:50 pm #648324
There is a duty on the frustrated seller to mitigate the loss caused as a result of the buyer’s breach
In this case it would seem that Yac should be able to sell the goods for $1,500 and thus would only have suffered a loss of $500
Does that satisfy you?February 9, 2022 at 3:14 pm #648363
so basically here we are assuming what would have been the case and not what happenedFebruary 9, 2022 at 9:05 pm #648396
I’m not totally sure what you mean. If Yac were to be able to claim £2,000, that would result in him receiving £2,000 as well as keeping the goods. That smacks of unjust enrichment!
Damages are awarded as compensation for the loss that Yac has suffered and, given that Yac retains the possession of £1,500 worth of goods, can you not see that the award of damages must be limited to the amount that Yac has suffered ie limited to £500
In summary, he retains goods that he could sell for £1,500 plus the damages award of £500 and that compensates him in full for Gur’s breach of contract
Is that better?February 9, 2022 at 9:08 pm #648399
Thank u so much sirFebruary 10, 2022 at 6:31 am #648417
You’re very welcome
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