Business Law Today, Comprehensive 10th Edition by Roger LeRoy Miller

Exercise 4

Case problem with Sample Answer-Conse­ quential Damages. After submitting the high bid at a foreclosure sale, David Simard entered into a contract to purchase real property in Maryland for $192,000. Simard defaulted (failed to pay) on the contract, so a state court ordered the property to be resold at Simard's expense,as required by state law. Theproperty was then resold for $163,000, but the second purchaser also defaulted on his contract. The court then ordered a second resale, resulting in a final price of $130,000. Assuming that Simard is liable for consequential damages, what is the extent of his liability Is he liable for losses and expenses related to the first resale If so, is he also liable for losses and expenses related to the sec­ond resale Why or why not