f the difference between market price and the contract price is paid as damge then its is called:?
Answers
Answer:
Damages are a common law remedy for breach of contract
· Any breach of contract allows the injured party to sue for damages
· Damages are intended to restore the injured party to the same position as if the contract had been performed, sometimes called the ‘expectation
loss’ basis
· Damages are awarded to compensate the claimant for his loss not punish the defendant
· If the injured party has suffered no loss as a result of the breach, only nominal damages will be available
· Two tests are applied to a claim for damages; remoteness of damage and measure of damages
Step-by-step explanation:
Market price rule
In a contract for the sale of goods the statutory measure of damages, as detailed in the Sale of Goods Act 1979, is the difference between the market price of the goods and the contract price. So, if a seller fails to sell the goods, the buyer can go out into the open market and purchase equivalent goods. The seller would have to compensate the buyer for any additional cost over the contract price. Similarly, if a buyer fails to buy the goods, the seller can sell the goods on the open market and recover any loss of income incurred in having to sell at a lower price than he contracted to.