Frank is the fresh produce supplier to Green Valley,an upscale restaurant.He provides the restaurant with imported meat for which he is paid $1,500 per day.One day,Frank fails to deliver the meat due to personal reasons.This causes the restaurant to order from a neighboring city for $2,500.The delay in shipment results in a foreseeable loss of $1,500 in revenue for Green Valley.If Green Valley decides to sue Frank for damages,the court is most likely to award Green Valley with damages in the amount of ______.

Question

Quizplus · Accepted Answer

If Green Valley decides to sue Frank for damages, the court is most likely to award Green Valley with damages in the amount of $2,500, which is the sum of compensatory damages in the amount of $1,000 and consequential damages in the amount of $1,500. Compensatory damages are court-awarded damages to put a plaintiff in the same position as if a contract had been performed. Compensatory damages are calculated depending on the damages a defendant suffered. Consequential damages are awarded only if the consequence was foreseeable. In this case, the compensatory damage is calculated based on the difference in market price versus contract price. So, the court will award $1,000 as compensatory damages, which is the difference between $1,500 and $2,500, plus $1,500 as consequential damages to Green Valley.

Frank Is the Fresh Produce Supplier to Green Valley,an Upscale