Jon-T Farms, Inc. v. Goodpasture, Inc.
Texas Court of Civil Appeals
554 S.W.2d 743 (1977)
Goodpasture (plaintiff) contracted to buy 10 million pounds of grain from Jon-T Farms (defendant) at a fixed price, but by the delivery deadline Jon-T had delivered only about 2 million pounds (plus another 2 million after Goodpasture sued), leaving most of the order unfilled while market grain prices had risen steadily since contracting. Goodpasture, itself in the business of buying and selling grain without segregating grain from different sources, was awarded damages by the jury based on the gap between the contract price and the market price at the time of breach; Jon-T appealed, arguing Goodpasture had actually covered its loss by buying replacement grain and should be limited to (or barred from, absent proof of) cover-based damages instead.
Whether, under the UCC, a buyer harmed by a seller's breach of a contract for the sale of goods may choose either a remedy based on market price at the time of breach or a remedy based on the buyer's cost to cover.