Joshua Contractually Agreed to Sell a Widget to Maya for $50

question 64

Multiple Choice

Joshua contractually agreed to sell a widget to Maya for $50 000.Before the sale was completed,however,Maya announced that she no longer wanted the widget.She therefore refused to accept delivery of it or to make any payment.The widget is really worth $55 000.There are several other parties who are willing to buy it from Joshua at that price.At the time of entering into his contract with Maya,however,Joshua thought that the widget was worth $60 000.He therefore thought that he would earn a profit of $10 000 under the contract.A court will order Maya to pay Joshua

• A)$5000.
• B)$50 000.
• C)$10 000.
• D)$55 000.
• E)$1.

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Definitions:

Legal Fees

Expenses paid or incurred for legal services, which businesses may incur in the course of operations or dispute resolution.

Equipment Account

An account on a company's balance sheet that reports the value of equipment owned by the company.

Routine Repairs

Regular maintenance activities required to maintain the functionality and efficiency of equipment or facilities.

Major Overhauls

Significant refurbishments or restorations of equipment or assets to extend their useful life, often involving considerable expenditure and downtime.