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Remedies for Breach of Sales and Lease Contracts-But What If... Wilbur sells exotic and tropical fruit to caterers in the greater metropolitan area. Most of the caterers' customers are very high-end individuals who are willing to pay high amounts for Wilbur's fruit. Wilbur gets his fruit from Pacific Gem Company, headquartered in San Francisco. Pacific Gem has been Wilburs supplier for over 10 years and knows the nature of Wilbur's business well and in detail. lychees, fruits that are a favorite of the clients. Glossier contracts with Wilbur to provide $22,000 of fresh dragon fruit and lychees Wilbur contracts with Pacific Gem for both the dragon fruit and lychees. Pacific Gem guarantees timely delivery. When the fruit arrives for Wilbur to inspect and then process and ship to Glossier, Wilbur discovers that the refrigeration in the fruit carriers has failed and the fruit are cannot send it back as they will completely spoil So, Wibur sells the fruit to local restaurants for immediate use Pacific Gem is unable to replace the fruit. Glossier sues Wilbur for breach of contract and Wilbur sues are not Pacific Gem
A. Wilbur is able to replace the dragon fruit and lychees from another supplier but at a cost of $35,000 which Wilbur passes on to Glossier.
Glossier accepts the fruit but refuses to pay the extra $13,000. Wilbur claims that Glossier is liable for that extra money since the issues
with the original fruit shipment was not Wilbur's fault.
B. Wilbur sues Pacific Gem for the difference of $13,000 that Glossier rightfully refused to pay. Wilbur claims that under the doctrine of
"cover," Pacific Gem owes Wilbur the difference in providing the goods to Glossier.
C. Assume that Pacific Gem did ship conforming fruit to Wilbur, but Wilbur has gotten a better offer for the fruit than the contracted-for price
with Glossier. Wilbur refuses to deliver. Glossier claims it can require Wilbur to deliver the fruit and not simply sue for damages.

Sagot :

Answer:

B. Wilbur sues Pacific Gem for the difference of $13,000 that Glossier rightfully refused to pay. Wilbur claims that under the doctrine of cover, Pacific Gem owes Wilbur the difference in providing the goods to Glossier.

Explanation:

Wilbur can claim the differential amount from Pacific Gem as it was not Wilbur mistake. The fruits were not properly delivered to the Wilbur and they were near to damage. It was necessary for Wilbur to sell these fruits to local restaurant as they were no in a condition to further ship to Glossier. It is now responsibility to deliver the fruits to Glossier as according to the agreement term. Any differential amount can be claimed by Pacific Gem.

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