Cosden
Oil & Chemical Co. v. Karl O. Helm Aktiengesellshaft
736
F.2d 1064 (5th Cir. 1984)
Analysis: When a seller repudiates,
it’s typically in the midst of a rising market.
If the market price is measured at the time of repudiation, it gives the
seller an incentive to repudiate rather than perform. If the market price is measured at time of performance,
it will give the buyer an incentive not to cover in the hopes that the price
will be higher at the time of performance.
The court compromises and says that the buyer may wait a “commercially
reasonable period of time” before covering.
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Damages