Which of the following is correct with respect to consequential damages under the Code?
A)Consequential damages include damages for destruction of a warehouse caused by the explosion of nonconforming goods.
B)Consequential damages include damages for lost profits from a contract to resell goods which the seller never delivers.
C)Particular needs of the buyer need to be made known to the seller before the seller can be held responsible for consequential damages relating to those needs.
D)All of the above are correct.

Question

Quizplus · Accepted Answer

All of the statements are correct with respect to consequential damages under the Code. Consequential damages are damages that flow from the loss of profits, property or other losses that result from a breach of contract. Therefore, A and B are both examples of consequential damages. Additionally, C is correct because the seller cannot be held responsible for consequential damages relating to a buyer's particular needs unless those needs were made known to the seller at the time of the contract.

Which of the Following Is Correct with Respect to Consequential