Question

Eli contracted to buy 600 bales of No. 1 quality cotton from Whitney. The contract provided that Eli would make payment prior to inspection. The 600 bales were shipped, and Eli paid Whitney. Upon inspection, however, Eli discovered that the cotton was No. 2 quality. Eli returned the cotton to Whitney and demanded return of the payment. Whitney refused on the ground that there is no difference between No. 1 quality cotton and No. 2 quality cotton. What is Eli's remedy for the nonconforming cotton?

A. Specific performance.
B. Damages measured by the price paid plus the difference between the contract price and the cost of buying substitute goods.
C. Damages measured by the difference between the value of the goods delivered and the value of conforming goods.
D. None. Eli waived any remedies by agreeing to pay before inspection.

Answer 1

Eli's remedy for the nonconforming cotton is damages measured by the difference in value between the goods delivered and the value of conforming goods.

Step-by-step explanation:

Eli's remedy for the nonconforming cotton would be C. Damages measured by the difference between the value of the goods delivered and the value of conforming goods. This means that Eli would be entitled to receive compensation for the difference in value between the No. 1 quality cotton that was promised in the contract and the actual No. 2 quality cotton that was delivered. The measure of damages would be the amount that Eli is out of pocket as a result of receiving inferior goods.