Sheldon had a contract with the Big Bang Brewery to supply the company with brew

Question

Sheldon had a contract with the Big Bang Brewery to supply the company with brewing equipment for $52,000. Sheldon was to deliver the equipment on June 15. On June 16, Big Bang Brewery called Sheldon because it had not received the equipment as promised and complained that without the equipment the company would be in breach of several contracts it had with its customers. Sheldon informed Big Bang Brewery that he would not be able to deliver the equipment until July 3; however, Big Bang Brewery told Sheldon it would not accept that. Big Bang Brewery then obtained the necessary equipment from Lenny for $75,000. Big Bang Brewery consulted an attorney about suing Sheldon for breach of contract. What may Sheldon recover?

Explanation / Answer

As per the Sales of Good contracts, if there is a breach of contract from the seller as he is not able to deliver the products as per the stated time frame, then the buyer has the right to recover damage for the non-delivery of the product which is the difference between the contracted price of the good and the actual price of the good in the market.

As in the case, the contracted price is $52,000 while the machine was purchased at a price of $75,000 due to non-delivery thus a damage of $75000-$52,000 = $23,000 can be recovered by the buyer Sheldon from the seller i.e. Big Bang Brewery .

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