Hastro Toys Mft. operates on a "just- in- time" inventory basis. When one of its suppliers missed a 2:00 PM delivery of a key component, the entire assembly line was shut down for the balance of the day. Hastro is suing its supplier for damages.

Question

Quizplus · Accepted Answer

The damages suffered by Hastro Toys due to the supplier's missed delivery fall under consequential damages, which refer to losses incurred as a result of the breach of contract. These damages are not direct losses but are incurred as an indirect consequence of the breach.