Tile & Grout (T&G)contracts to resurface the insides of the pools at WaterWorld Park. T&G knows that without the resurfacing,WaterWorld will have to delay its seasonal opening. T&G does not perform as promised. As consequential damages,WaterWorld can recover
A)the cost of new pools.
B)the difference between T&G's price and the eventual cost of resurfacing.
C)the loss of profit from the delayed opening.
D)nothing.

Question

Quizplus · Accepted Answer

As a result of T&G's failure to perform as promised, WaterWorld is entitled to recover consequential damages. The delay in opening the park which leads to the loss of profit is a valid form of consequential damages. WaterWorld cannot recover the cost of new pools, as that would be considered direct damages, and cannot recover the difference between T&G's price and the eventual cost of resurfacing, as that would be too speculative. Thus, option C is the best choice.

Tile & Grout (T&G)contracts to Resurface the Insides of the Pools