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Robert in Chicago entered into a contract to sell certain machines to Terry in N

ID: 2791729 • Letter: R

Question

Robert in Chicago entered into a contract to sell certain machines to Terry in New York. The machines were to be manufactured by Robert and shipped F.O.B. Chicago not later than March 25. On March 24, when Robert is about to ship the machines, he receives a letter from Terry wrongfully repudiating the contract. The machines cannot readily be resold for a reasonable price because they are a special kind used only in Terry's manufacturing processes. Robert sues Terry to recover the agreed price of the machines. What are the rights of the parties?

Explanation / Answer

Right of seller i.e., Robert: Robert can recover the price of manufactured goods from terry including the damages because here, Terry fails to complete the contract by not paying the amount.
And in this case Robert cannot reuse the products after reasonable effects because they are special kind used by only specific orders.
Thus, Robert can sue Terry for recovery of the price including any epenses or damages relating to this contract.

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