David ordered a leather suite from Quality Sofas Limited during the last day of their summer sale. The original price was £5,000 but he got a 20%discount so that the sale price was £4,000. Under the terms of the contract there was nothing to pay until delivery. It was a term of the contract with Quality Sofas Limited, that the suite would be delivered by31st August 2012. It is now November 2012 and the suite has still not been delivered. David has informed them that he is treating non-delivery as a repudiatory breach and is not now prepared to accept delivery. He needs a suite before Christmas as he is entertaining family. He has just purchased the same suite from an alternative supplier, Luxury Leathers ,for £5,500. The suite has never been on sale at Luxury Leathers.
Which of the following statements is CORRECT in relation to any remedythat David may have?
[A] He can claim damages for non-delivery and recover the full £5,500 fromQuality Sofas Limited.
[B] A claim for £1,500 in damages plus interest properly reflects his loss fornon-delivery.
[C] He would be entitled to claim interest under the Late Payment ofCommercial Debts (Interest) Act 1998.
[D] David has a claim for restitution damages and recovery of the £4,000 original purchase price.
[B] A claim for £1,500 in damages plus interest properly reflects his loss for non-delivery.
[[B] is CORRECT. The measure of damages for non-delivery/non-performance is the difference in the market price of the goods at the contractual date of delivery and the contract price. See Remedies Manual at Table 5.1 page 28. To recover £5,500 (the answer in [A]) would put the Claimant in a better position than had the contract been properly performed. His claim is therefore £5,500 less £4,000.]