When either party of a contract, whether it is the buyer or the seller, repudiates a contract, the victimized company can either await performance for a reasonable time or resort to a remedy for breach of contract. When C&S assures TT that the products would not get there by contract date, then TT has a choice of what they want to do since the contract has already been breached. They could cover, obtain damages for non delivery, or just to accept the goods anyway, each of which I will discuss.
Cover is when the buying company (TT) can go elsewhere and purchase same or similar products if reasonable. If there were another company, TT could order similar products from them if they were willing to do so. Since C&S breached the contract, if the second company’s prices were more expensive than C&S, then C&S would have to cover the original costs of the contract plus the difference in cover price from the contract price. C&S would also have to pay incidental and consequential damages, minus the expenses saved. But if the covering saves expense, the savings are deducted from any damages. The next option is non delivery.
If TT does not cover, or fails to cover reasonably, they could leave C&S with damages for non-delivery. The measure of the damages is the market price at time of breach minus the contract price, plus incidental and consequential damages, minus saved expenses.
TT could also accept the toys late if they have no other alternatives. If there are no other companies to get toys from, TT would just have to suffer a loss. Also, if a company wants some sort of compensation for delivering the items late.
When a breach of contract occurs, it causes a whole lot of setbacks for both companies. Both companies need to be on point with their contracts which could save them both time and money. When a buying company knows some of its remedies of breach of contract such as cover, damages for non delivery, or acceptance of goods,...