Mona contracts to repair a computer for NuData, Inc. (NDI). Mona knows that without the computer, NDI will lose a sale. Mona does not perform as promised. NDI files a suit against Mona. As consequential damages, NDI can recover
A) the cost of a new computer.
B) the difference between Mona's price and the actual cost of repair.
C) the loss of profit from the lost sale.
D) nothing.

Question

Quizplus · Accepted Answer

Consequential damages are losses that do not flow directly from the breach itself, but arise from the special circumstances of the aggrieved party. Here, NDI lost a sale because of Mona's failure to repair the computer, which is a special circumstance that qualifies as consequential damages. Therefore, NDI can recover the loss of profit from the lost sale. The cost of a new computer or the difference between Mona's price and the actual cost of repair are not consequential damages in this scenario. Mona's failure to perform as promised creates a liability, so NDI is entitled to recover damages. Option D is incorrect.

Mona Contracts to Repair a Computer for NuData, Inc