Contracts & ExecutionQuestion 866 of 1605
Consequential (special) damages in a breach case are damages that:
a.Always equal the contract price
b.Can never be recovered in any contract case
c.Are the same as nominal damages
d.Arise from the injured party's particular circumstances and are recoverable only if they were foreseeable to the breaching party at contract formation
Explanation
Consequential or special damages flow from the injured party's particular situation, such as lost business profits caused by a delay, and are recoverable only if they were reasonably foreseeable to, or communicated to, the breaching party when the contract was made, under the rule of Hadley v. Baxendale. They differ from direct damages, are not equal to the price, are not nominal damages, and are recoverable when the foreseeability requirement is met.
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Related questions on this topic
- A mutual mistake of a material fact by both parties at the time of contracting may allow:
- Fraud in the inducement of a contract generally requires proof that a party:
- The remedy of 'restitution' in contract law is designed to:
- Nominal damages are awarded when:
- A 'waiver' in the context of a contract generally refers to:
- A 'no oral modification' clause states that the contract may be changed only by a signed writing. Its practical purpose is to:
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Reviewed by Abraham Chen — Licensed California General Contractor (CSLB License #1101856 — verify)