Marie contracts to buy coffee beans for her store from Owen. The contract price is $5.00 per pound. Owen breaches the contract and delivers no coffee. Marie's damages will be: a. the amount Owen can afford to pay. b. the amount she seeks. c. the difference between the contract price on the coffee and the profits that Marie may have made selling the coffee. d. the difference between the market price of the coffee and the contract price.

Question

Business

Kinley

13 February, 17:08

Marie contracts to buy coffee beans for her store from Owen. The contract price is $5.00 per pound. Owen breaches the contract and delivers no coffee. Marie's damages will be: a. the amount Owen can afford to pay. b. the amount she seeks. c. the difference between the contract price on the coffee and the profits that Marie may have made selling the coffee. d. the difference between the market price of the coffee and the contract price.

+4

Answers (1)

Know the Answer?

Ralph Hopkins · Answer 1

d. the difference between the market price of the coffee and the contract price.

Explanation:

Damages can be described as the loss caused by a breach of a contract. They are measured and expressed in monetary units. Damages arise because one person in a contract has not fulfilled their obligation. As a result, the innocent party suffers losses or injury.

Damage compensation should take an injured party to where they should have been if the contract was not breached. For Marie, If the contract was not breached, she would have bought the coffee at $5 per pound. Her damages would be the difference between the price she eventually paid for the coffee, and the contract price of $5.