If the buyer breaches, damages are measured to put the seller in the position of the contract's expected profit

If the buyer breaches, damages are measured to put the seller in the position of the contract's expected profit

• A. The seller's actual costs.
• B. The contract price.
• C. To place the seller in the position of expected profit.
• D. The market price.

Answer: (C)

Damages in contract law are about putting the non-breaching party where they would have been if the contract had been performed. For a seller facing a buyer’s breach, that means compensating the seller for the profit they expected to earn from fulfilling the contract—the contract price minus the costs to perform. In other words, the measure is the seller’s expected profit, not just their costs or the full contract price, and not the market price. The goal is to make the seller whole as if the deal had gone through, including the profit they would have realized.

Damages in contract law are about putting the non-breaching party where they would have been if the contract had been performed. For a seller facing a buyer’s breach, that means compensating the seller for the profit they expected to earn from fulfilling the contract—the contract price minus the costs to perform. In other words, the measure is the seller’s expected profit, not just their costs or the full contract price, and not the market price. The goal is to make the seller whole as if the deal had gone through, including the profit they would have realized.