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44. If the buyer sues the seller for breach, will the buyer be likely to prevail?
In a writing signed on February 1, a buyer agreed to purchase a specified quantity of lumber from a seller for $12,500, delivery to be made on July 1. Thereafter, the market price of lumber increased significantly. Due to this price increase, on June 14 the seller told the buyer that it would not deliver the lumber unless the buyer agreed to a purchase price of $14,500 and agreed to waive any claim for damages against the seller. The buyer refused and told the seller that she would purchase lumber elsewhere. On June 18, after a reasonable search for alternative sources, the buyer purchased lumber from another supplier for $15,500.
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B is incorrect. If the buyer had agreed to the modification and obtained the lumber from the seller, the buyer would have also given up its claim for damages. Therefore, the transaction would not have been a reasonable substitute purchase.
C is incorrect. Even if the seller's request for a modification was made in good faith, the buyer did not agree to the modification and was free to reject the seller's request for an increased purchase price.
D is incorrect. The buyer did not have to mitigate by purchasing from the seller, since the seller's offer was conditioned on the buyer also giving up any claim for damages against the seller.