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What remedy, if any, does Margaret have against Paragon?


What remedy, if any, does Margaret have against Paragon?


Margaret contracted to buy a particular model Rolls-Royce from Paragon Motors, Inc. Only one hundred of these models are built each year. She paid a $30,000 deposit on the car, but Paragon sold the car to Gluck. What remedy, if any, does Margaret have against Paragon?

Answer and explanationsSolution by a verified expert


The sales of goods contract provides certain remedies to the buyer. A buyer can avail any one or all of the available remedies. In this case, Person M, being the buyer, can avail following remedies:

Person M can cancel the contract, as a whole, with Seller P, considering that Seller P has breached of contract by selling the car to Person G. Person M can claim for the recovery of the advance payment, which they have made, plus any incidental damages.
By claiming cover, Person M is going to be able to recover only the difference between the cover value and the contract value with the addition to incidental damages from the seller on behalf of the breach, which cannot be considered sufficient in this case.
Other than cover, Person M can avail the remedy of the recovery of damages for the nondelivery of goods, where Person M is entitled to recover the difference between the market value and the contract cost, at the time of the breach, along with incidental damages and consequential damages.

Verified Answer

In this case, Person M, the buyer, can avail any of the following remedies:

Person M can cancel the contract with Company P and recover the damages.
Person M can obtain cover, under the sales of goods contract, to protect themself from the seller's breach.
Person M can claim recovery for the damages due to the nondelivery of goods.

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