Legal rules on anticipatory breach


Case Problem:

CISG Articles 71–73 contain legal rules on anticipatory breach. Article 77 contains rules on the mitigation of damages. These articles can be found in the appendix. Consider the following case: A contract provided that Mexicana Fabricators, S.A., would deliver 1,000 personal computer housings by December 1 to AES Computer, Inc., in Austin, Texas, for a total price of $50,000. On July 1, Mexicana faxed AES that due to a rise in prices they could not deliver for less than $60,000. AES replied that it would insist that Mexicana deliver at the $50,000 price. From July 1 through September, AES could have bought the housings from other suppliers for $55,000 for December 1 delivery. On December 1, AES covered and purchased the housings for $64,000 for delivery on February 1. Because of the delay until February 1, AES Computer suffered additional damages of $2,000. What is the measure of AES’s damages? Was AES under any duty to mitigate damages? Why or why not?

Your answer must be typed, double-spaced, Times New Roman font (size 12), one-inch margins on all sides, APA format and also include references.

Request for Solution File

Ask an Expert for Answer!!
Business Law and Ethics: Legal rules on anticipatory breach
Reference No:- TGS01982674

Expected delivery within 24 Hours