A builder ordered 100 squares of shingles for installation on homes to be built at $120 per square. Delivery was required no later than noon Monday; the truck arrived at 1:00 p.m. Monday, and the builder rejected the shipment. The store resold the shingles at $110 per square, and it would have earned a profit of $3,000 had the builder accepted. If the store sues for breach, how much can the store recover?

• A. $1,000
• B. $3,000
• C. $0
• D. Nothing

Answer: (D)

The key idea is how damages are measured when a seller breaches by failing to deliver on time under the UCC. If the seller tenders late and the buyer rejects, the seller may resell the goods and the damages are the shortfall between the contract price and the resale price, plus any incidental damages, minus costs saved.

Here, the contract price is 120 per square for 100 squares, totaling 12,000. The shingles are resold for 110 per square, totaling 11,000. The difference is 1,000. The fact that, had the buyer accepted, the seller would have earned a 3,000 profit does not change the damages calculation—the remedy aims to put the non-breaching party in the position it would have been in had performance occurred, considering actual loss, not speculative profit on the original contract. Since no additional incidental damages are stated, the recoverable amount is 1,000.