In the sale of goods, if the buyer does not cover in good faith or at all, damages are measured by which formula?

• A. Cover price minus contract price
• B. Market price minus contract price
• C. Value as promised minus value delivered
• D. Contract price

Answer: (B)

Under the Uniform Commercial Code, when the buyer breaches and does not cover, damages are measured by the market price of the goods at the time and place where delivery was due minus the contract price. This reflects the actual loss from the breach because the seller cannot force the buyer to take the goods, and the market price shows what it would have cost to obtain substitutes. If the buyer had covered in good faith, the measure would be the cover price minus the contract price. The other options don’t fit: using only the contract price ignores any market fluctuation, and using value promised minus value delivered isn’t the standard UCC damage measure for buyer breaches in the sale of goods.