Mona contracts to repair a computer for New Data,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

Question

Quizplus · Accepted Answer

Consequential damages refer to damages that are not directly caused by the breach of contract, but rather are a result of the breach. In this case, the loss of profit from the lost sale is a consequential damage that NDI can recover. 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 situation. Mona's breach does have a direct impact on NDI's ability to make the sale and recover profits. Therefore, consequential damages in this case would include the loss of profit from the lost sale.

Mona Contracts to Repair a Computer for New Data,Inc