A store ordered 100 squares of shingles at a contract price of $120 per square. Delivery was required no later than noon on Monday, but arrived at 1:00 p.m. that day. The buyer rejected. The store resold the shingles for $110 per square and would have earned $3,000 profit if accepted. If the store sues for breach, how much can it recover?

• A. A Nothing
• B. B $1,000
• C. C $3,000
• D. D $4,000

Answer: (A)

The issue being tested is whether a minor late delivery by the seller constitutes a material breach and whether the buyer can recover damages for such a breach under the UCC. Time of performance is not automatically treated as “of the essence” unless the contract says so or the breach is material; a short delay for nonperishable goods like shingles is typically not material.

Here, delivery was only one hour late. That small delay does not substantially defeat the purpose of the contract, so the breach is not material. If the breach isn’t material, the buyer cannot invoke damages for non-delivery or late delivery, and the fact that the buyer resold the shingles for a lower price or that it would have earned a $3,000 profit if accepted does not convert this into an actionable loss. There was no actual harm caused by the breach that would give rise to damages, so the store cannot recover anything.