If the buyer keeps non-conforming goods, which damages measure applies?

If the buyer keeps non-conforming goods, which damages measure applies?

• A. Cover damages
• B. Loss in value = value promised - value delivered
• C. Market damages
• D. Resale damages

Answer: (B)

When a buyer keeps nonconforming goods, the damages are measured by the loss in value caused by the lack of conformity. In practical terms, this means comparing what the goods were supposed to be worth under the contract (the value promised) with what they are worth in their actual nonconforming condition (the value delivered). The difference shows how much value the breach cost the buyer. For example, if the contract price was 1,000 and the nonconforming goods are worth only 700, the loss in value is 300. Incidental and consequential damages may also be recoverable, and any saved expenses due to the breach are typically deducted. This approach focuses on the diminished value from the breach, unlike cover damages (substituting with new goods), market damages (differences in market price), or resale damages (losses from reselling).

When a buyer keeps nonconforming goods, the damages are measured by the loss in value caused by the lack of conformity. In practical terms, this means comparing what the goods were supposed to be worth under the contract (the value promised) with what they are worth in their actual nonconforming condition (the value delivered). The difference shows how much value the breach cost the buyer. For example, if the contract price was 1,000 and the nonconforming goods are worth only 700, the loss in value is 300. Incidental and consequential damages may also be recoverable, and any saved expenses due to the breach are typically deducted. This approach focuses on the diminished value from the breach, unlike cover damages (substituting with new goods), market damages (differences in market price), or resale damages (losses from reselling).