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Bayou Boats, Inc., contracts for the sale of seven swamp boats to Eventide Fishing Tours. Bayou repudiates the contract. Eventide's recovery is measured at the time

a.Eventide learned of the breach.
b.Bayou advertised the goods.
c.Eventide ordered the goods.
d.Bayou knew that it would repudiate the contract.

1 Answer

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Final answer:

Eventide's recovery for the repudiation of the contract by Bayou Boats, Inc. would be measured at the time Eventide learned of the breach, as this is when damages are typically assessed in contract law to allow the non-breaching party to mitigate their damages effectively.

Step-by-step explanation:

In the context of contract law, Eventide Fishing Tours' recovery for Bayou Boats, Inc.'s repudiation of the contract to sell seven swamp boats would be measured at the time Eventide learned of the breach. This is based on the principle that damages are assessed at the time the non-breaching party knew or should have known of the breach, allowing them to mitigate damages and seek the closest possible remedy to their actual loss.

Neither the time Bayou advertised the goods, Eventide ordered the goods, nor when Bayou knew it would repudiate the contract, are relevant for determining the measure of Eventide's recovery. The critical issue is when Eventide was actually informed or became aware of the breach because it is at this point they could no longer expect performance and needed to consider alternative arrangements to mitigate their losses.

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