Paralegal Exam Prep

Category - Contracts

Albert found a great new job that required him to move from Southern California to Montana. Since he would no longer need it, Albert decided to sell his top-of-the-line, custom-crafted surfboard. Arnold entered into an agreement with Albert to purchase the surfboard for $500. Arnold lost his job and told Albert that he could not afford to buy the surfboard. Archie agreed to purchase it for $400, and Arthur offered Albert $500. Because Archie is a good friend to Albert, he decided to sell it to him for $400. In a breach of contract lawsuit against Arnold, how much would Albert recover under the UCC?
  1. $500
  2. $400
  3. $100
  4. $1
  5. $0
Explanation
Answer: E. In a breach of contract lawsuit, Albert would not be able to recover anything under the UCC. While the objective of the UCC in a breach action is to make the non-breaching party whole, Article 2 bars recovery of consequential damages where the loss could have been avoided by cover. Albert could have avoided losing any money if he had accepted Arthur's offer of $500.
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