lost volume seller
- Refers to a seller who manages to sell to a new buyer after a previous buyer violates a sales contract, while still having had the capacity to sell to the second buyer even if the initial agreement had been followed
- In the case of a lost volume seller, even if the initial buyer had not breached the contract, the seller could have still sold to the second buyer.
- The company is considered a lost volume seller because it was able to sell the product to another customer, regardless of the first customer's contract breach.
- After the breach of contract by the original purchaser, the lost volume seller successfully negotiated a deal with an additional buyer they could have engaged even if the first sale had occurred.