Seller in Georgia and Buyer in the Netherlands Enter into a Contract

question 50

Multiple Choice

Seller in Georgia and buyer in the Netherlands enter into a contract for the sale of goods,CIF port of Amsterdam.The seller refused to ship.The buyer brings an action for damages.In the United States,a court would probably rule that:

• A) The seller was correct in not shipping until payment was received.
• B) The damages should be measured by the difference between the contract price and the market price of the goods at the port of shipment.
• C) The damages should be measured by the difference between the contract price and the market price of the goods in Amsterdam at the time the documents would have been presented to the buyer for payment.
• D) None of the above.

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Definitions:

Bond Premium

The excess value of a bond above its face value in the marketplace.

Straight-Line Method

A depreciation method that allocates an equal amount of the depreciable cost of an asset to each year of its useful life.

Semiannual Interest

Interest that is calculated and paid twice a year.

Bond Premium

When a bond's selling price surpasses its original issued cost, known as its face value.