Adam contracts to sell Ben 100 widgets for $100 for use in Ben's factory.Adam does not know that Ben's factory is closed as it is waiting for supply of widgets from Adam.Will Adam be liable for the damages caused due to late delivery?

Question

Quizplus · Accepted Answer

In the above case,Adam will not be liable for any damages caused due to late delivery to Ben's factory.These consequential damages are not recoverable unless the defendant had reason to foresee them at the time the contract was created.Generally,this means that the defendant must have known of the special circumstances that caused the loss.

Adam Contracts to Sell Ben 100 Widgets for $100 for Use