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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 3 years ago by MikeLittle.
Viewing 6 posts - 1 through 6 (of 6 total)
  • Author
    Posts
  • February 8, 2022 at 12:10 pm #648298
    Anonymous
    Inactive
    • Topics: 65
    • Replies: 117
    • ☆☆

    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: 27
    • Replies: 23321
    • ☆☆☆☆☆

    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
    Anonymous
    Inactive
    • Topics: 65
    • Replies: 117
    • ☆☆

    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: 27
    • Replies: 23321
    • ☆☆☆☆☆

    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
    Anonymous
    Inactive
    • Topics: 65
    • Replies: 117
    • ☆☆

    Thank u so much sir

    February 10, 2022 at 6:31 am #648417
    MikeLittle
    Keymaster
    • Topics: 27
    • Replies: 23321
    • ☆☆☆☆☆

    You’re very welcome

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