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Contracts • Remedies for Unexcused Non-Performance
K#157
Legal Definition
Either:
(A): (Fair Market Value If Goods Were Perfect) - (Fair Market Value as Delivered)
or
(B): (Cost of Repair)
(A): (Fair Market Value If Goods Were Perfect) - (Fair Market Value as Delivered)
or
(B): (Cost of Repair)
Plain English Explanation
If a seller gives a buyer goods that are damaged, the buyer can choose to either sue the seller for the difference in value of the goods, or they can sue for the cost of repairing the goods.
Hypothetical
Hypo 1: Sam sells bicycles for $100 each. Bob buys 1 bicycle. When it arrives, Bob notices the bike has 2 flat tires. While a bike with 2 new tires is worth $100, a bike with 2 flat tires is only worth $60. Result: Bob has 2 options to sue Sam. The first would be to sue Sam for $40, which would bring the total cost of the bike down to $60, which is the fair market value of a bike with 2 flat tires. The second option is that Bob can look up the price for 2 new tires + installation, and then sue Sam for that cost.
Visual Aids
Related Concepts
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