Speedy Deliveries delivered an envelope two days later than they had promised in their courier services contract.Unbeknownst to Speedy,the envelope contained important title documents and their client now alleges the late delivery caused a real estate deal to fall through and is suing Speedy for the $200,000 profit it had expected to make from the deal.Which statement describes the most likely outcome?
A) The damages cannot be recovered from Speedy because the plaintiff has failed to mitigate.
B) The damages will not be recoverable because they are pure economic losses.
C) The damages will likely be regarded as a natural consequence of a contract breach.
D) The claim will likely fail because the damages are too remote.

Question

Quizplus · Accepted Answer

The claim is likely to fail because the damages (loss of $200,000 profit from the real estate deal) are considered too remote, meaning they are not a foreseeable consequence of the breach of contract (late delivery of the envelope) that Speedy Deliveries could have anticipated. In contract law, for damages to be recoverable, they must be a foreseeable result of the breach at the time the contract was made. Since Speedy was unaware of the contents of the envelope or its significance to a real estate deal, the loss of profit is not a direct and foreseeable consequence of the late delivery.

Speedy Deliveries Delivered an Envelope Two Days Later Than They