I contract with Bobs Heating Oil in June to take delivery of

I contract with Bob\'s Heating Oil in June to take delivery of 500 gallons of heating oil on December 1st at a price of $1.00 per gallon. In August, Bob\'s Heating Oil contacts me and tells me they will be unable to sell me that 500 gallons on December 1st. At that time, Tom\'s Heating Oil company is offering December deliveries at a price of $1.50 per gallon. By December, the price of heating oil has climbed to $2.00 per gallon. I purchase 500 gallons from Tom\'s for a price of $1,000. I sue Bob\'s for damages. How much will I be awarded?

Solution

According to contract I had contracted with Bob\'s heating oil to buy 500 gallons of heating oil at a price of $ 1.00 per gallon.

Bob breached the contract and told that it will unable in delivering heating oil on 1st of December .

As per contract I might\'ve purchased oil at a price

500×1 = $500

I will be rewarded $500 . (=1000-500)

Now, due to this I was forced to buy at a price of $2 .

I will be awarded = $ 500