Question

Which of the following is not a remedy Sam Seller may seek under Article 2 if Barney Buyer breaches the sales contract?1. cancel the sales contract 2. damages for lost profits 3. incidental damages 4. stop shipment before Barney receives the goods 5. secured transaction

Answer 1

Option D. Stop shipment before barney receives the good.

Step-by-step explanation:

The reason is that Article 2 says that the claim must not exceed

• The amount of profit lost due to breach of contract by the other party to contract (Option 2).
• The incidental damages caused by the breach of contract (Option 3).
• Other losses which the party to contract despite knowing has breached the contract.

This means all the options are claimable but the option 4, stopping the shipment before barney receives the good is not a remedy as it is not a loss.

Furthermore, the secured transaction is a valid claim if the other party breaches the contract. The other party is liable to return the the consideration received hence it is a valid claim (Option 5).

The cancelation of sales is valid claim for the party because it is the main cause of incidental and profit losses (Option 1).