A Buyer Contracts to Buy an Automobile from a Seller

question 51

Multiple Choice

A buyer contracts to buy an automobile from a seller (an individual who is not a car dealer) for $1,000.The buyer fails to accept and pay for this car,so the seller sells it to another party for $1,200.This second sale cost the seller an extra $50 in advertising.The seller sues the buyer for damages for breach of contract.In this situation,which of the following is true?

• A) The seller can collect $250.
• B) The seller can collect $200.
• C) The seller can collect $50.
• D) The seller collects nothing,but keeps the extra amount received.
• E) The seller collects nothing,but must give buyer the extra $150.

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Definitions:

Interest

A fee paid for the use of borrowed funds, or for delaying the repayment of a debt.

Days

Units of time equivalent to 24 hours, often used to measure durations or intervals.

Investment

The distribution of funds or assets with the intention of earning financial returns or profits.

Interest

Expenses incurred for the authorization to take out a loan, frequently shown as an annual rate in percentage.