Kim resold the 500 sacks of flour for $3 per sack. What are Kim’s rights against Lynn?

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Kim resold the 500 sacks of flour for $3 per sack. What are Kim’s rights against Lynn?

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On November 4, Kim contracted to sell to Lynn 500 sacks of flour at $4 each to be delivered to Lynn by December 12. On November 27, Kim shipped the flour. By December 5, when the shipment arrived, containing only 450 sacks, the market price of flour had fallen. Lynn refused to accept delivery or to pay. Kim shipped 50 more sacks of flour, which arrived December 10. Lynn refused delivery. Kim resold the 500 sacks of flour for $3 per sack. What are Kim’s rights against Lynn?

Explanation & AnswerSolution by a verified expert

Explanation

As per the Cure by the Dealer rule under the Perfect Tender Rule, the Dealer is entitled to correct the non conformance of the delivery within the specified time.
In this case, the Dealer K was failed in conformance delivery of the goods by the first time that was rejected by Customer L under the Perfect Tender Rule. Dealer K delivered the conformance goods as the correction of their previous delivery, which was within the specified time. However, the Customer L breached the contract by not accepting the delivery of that conformance goods and Customer K had to bear the relevant losses. For this reason, Dealer K can take action against the Customer L in order to cover the losses incurred .

Verified Answer

In this case, Dealer K recorrected the non conformance delivered goods within the specified period. However, the Customer L breached the contract by not accepting the conformance delivery. So, in this context, Dealer K has the right to take any appropriate action against Customer L to cover the damages that happened due to the breach of the contract.

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