Question

On February 15, Mazur Corp. contracted to sell 1,000 bushels of wheat to Good Bread, Inc., at $6.00 per bushel with delivery to be made on June 23. On June 1, Good advised Mazur that it would not accept or pay for the wheat. On June 2, Mazur sold the wheat to another customer at the market price of $5.00 per bushel. Mazur had advised Good that it intended to resell the wheat. Which of the following statements is true?

A. Good can successfully sue Mazur for specific performance.
B. Mazur can resell the wheat only after June 23.
C. Good can retract its anticipatory breach at any time before June 23.
D. Mazur can successfully sue Good for the difference between the resale price and the contract price.

Answer 1

Mazur can successfully sue Good for the difference between the resale price and the contract price.

Step-by-step explanation:

In this situation, the correct statement is D. Mazur can successfully sue Good for the difference between the resale price and the contract price. When Good Bread, Inc. advised Mazur Corp. that it would not accept or pay for the wheat, this constituted an anticipatory breach of contract. As a result, Mazur was justified in selling the wheat to another customer at the market price. Mazur can sue Good for the difference between the resale price of $5.00 per bushel and the contract price of $6.00 per bushel.