Question

S agrees to specially manufacture a machine for B. After S finishes the job, B breaches the contract. Knowing that there is no market for the machine, S does not try to resell it. Instead, S sues B for the price of the machine. Which of the following is true? Assume that there truly was no market for the machine.

A. S can recover only the input price invested in making the machine.

B. No recovery, because S was obligated to make an effort to resell the partially completed machine for scrap.

C. No recovery, because here S was obligated to sue B for his lost profit on the deal.

D. S can recover the price of the machine from B.

Answer

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