A perfume bottle supplier ships 1,000 bottles and charges $3.50 per bottle, but the court determines a reasonable price at delivery was $3.25. The perfumer had paid $2.50 per bottle earlier. What is the appropriate amount the court should award?

• A. A $2,500
• B. B $3,250
• C. C $3,500
• D. D $3,750

Answer: (B)

The main idea is to put the non-breaching party in the position they would have been in if the contract had been performed, using the market price at the time delivery should have occurred. Since the court finds the reasonable price at delivery is 3.25 per bottle, for 1,000 bottles the value the perfumer should be compensated is 1,000 × 3.25 = 3,250. The prior payment of 2.50 per bottle doesn’t change this remedy here; the award mirrors the market value that should have been paid. The other figures would reflect different bases (such as the earlier price or the contract price) and don’t align with awarding the market price determined by the court.