• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
Free ACCA & CIMA online courses from OpenTuition

Free ACCA & CIMA online courses from OpenTuition

Free Notes, Lectures, Tests and Forums for ACCA and CIMA exams

  • ACCA
  • CIMA
  • FIA
  • OBU
  • Books
  • Forums
  • Search
  • Register
  • Login
  • ACCA Forums
  • Ask ACCA Tutor
  • CIMA Forums
  • Ask CIMA Tutor
  • FIA
  • OBU
  • Buy/Sell Books
  • All Forums
  • Latest Topics

Congratulations to Jamil from Pakistan and Jeeva from Malaysia - Global Prize winners!
see all ACCA December 2022 Genius Hunt Competition winners >>

Specially for OpenTuition students: 20% off BPP Books for ACCA & CIMA exams – Get your BPP Discount Code >>

The claim of damages

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA LW Exams › The claim of damages

  • This topic has 5 replies, 2 voices, and was last updated 11 months ago by MikeLittle.
Viewing 6 posts - 1 through 6 (of 6 total)
  • Author
    Posts
  • February 8, 2022 at 12:10 pm #648298
    Safiya.12345
    Participant
    • Topics: 61
    • Replies: 111
    • ☆☆

    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?

    $500

    $1,000

    $1,500

    $2,000

    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 1500

    February 8, 2022 at 6:50 pm #648324
    MikeLittle
    Keymaster
    • Topics: 26
    • Replies: 22705
    • ☆☆☆☆☆

    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
    Safiya.12345
    Participant
    • Topics: 61
    • Replies: 111
    • ☆☆

    so basically here we are assuming what would have been the case and not what happened

    February 9, 2022 at 9:05 pm #648396
    MikeLittle
    Keymaster
    • Topics: 26
    • Replies: 22705
    • ☆☆☆☆☆

    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
    Safiya.12345
    Participant
    • Topics: 61
    • Replies: 111
    • ☆☆

    Thank u so much sir

    February 10, 2022 at 6:31 am #648417
    MikeLittle
    Keymaster
    • Topics: 26
    • Replies: 22705
    • ☆☆☆☆☆

    You’re very welcome

  • Author
    Posts
Viewing 6 posts - 1 through 6 (of 6 total)
  • You must be logged in to reply to this topic.
Log In

Primary Sidebar

ACCA News:

 

ACCA My Exam Performance for non-variant Applied Skills exams is available NOW

NEW! Download the ACCA Pass Guide

FREE Verifiable CPD for ACCA Members

ACCA mock exams and debrief videos

ACCA Options:  “Read the Mind of the Marker” articles

Subscribe to ACCA’s Student Accountant Direct

Donate

If you have benefited from OpenTuition please donate.

ACCA CBE 2023 Exams

Instant Poll * How was your exam, and what was the result?

BT CBE exam was.. | MA CBE exam was..
FA CBE exam was.. | LW CBE exam was..

Specially for OpenTuition students

20% off BPP Books

Get BPP Discount Code

Latest comments

  • MelodyC on MA Chapter 10 Questions The Management Accountant’s Profit Statement – Marginal Costing
  • douglasnyangara on Foreign exchange risk management (1) Part 4 – ACCA (AFM) lectures
  • douglasnyangara on Foreign exchange risk management (1) Part 4 – ACCA (AFM) lectures
  • AnnaTeddy on Basic group structures – SPLOCI introduction and example – ACCA (SBR) lectures
  • tanyanti on Conceptual Framework – ACCA SBR lecture

Copyright © 2023 · Support · Contact · Advertising · OpenLicense · About · Sitemap · Comments · Log in


We use cookies to show you relevant advertising, find out more: Privacy Policy · Cookie Policy