§ 2708 Seller Damages For Breach

• •Seller can claim the gap between market price and contract price, plus extra costs, minus any savings from the buyer’s breach.
• •If that gap isn’t enough, seller can claim the profit they would have earned, plus extra costs, minus any costs they actually paid and any money they already got from reselling.
• •Incidental (extra) damages are always part of the claim.

A farmer agrees to sell 100 bushels of corn to a grocery store for $4 each, but the store cancels the order. At the time of the cancellation, corn is selling for $6 a bushel at the market.

The farmer can ask for the difference ($2 per bushel) times the 100 bushels, plus any extra costs caused by the cancellation, but can subtract any money they saved because they didn’t have to deliver the corn. If that amount still doesn’t cover what the farmer lost, the farmer can also ask for the profit they would have made (including normal overhead) and any other small losses, minus any costs they actually spent and any money they got from reselling the corn.