Buyers would reject shipments if they could still recoup damages

Evidence

Both the United States and the complainant urge that to allow recoupment of damages even though there has been a wrongful rejection would defeat the policy of the Perishable Agricultural Commodities Act of 1930, 7 U.S.C.A. §499a et seq. They contend that buyers would not be discouraged from rejecting if they knew that they would still be able to recoup damages in a suit against them for the purchase price. The United States poinis out that for a period of over ten years the Department of Agriculture has interpreted the regulations promulgated by the Department as not allowing recovery of damages where there has been a wrongful rejection. It states that our opinion in this case changes the principle under which the Department and the trade have operated for many years. — Henry M. Hart, Jr. and Albert M. Sacks, The Legal Process, 1611

Categorization

• XREF: Behavioral-deterrence reasoning about remedies — the same logic as contract-remedy theory, where the design of remedies shapes whether parties perform or breach.