Question

Lava Excavators, Inc., needs a drill to continue its operations and orders one for $3,000 from Mining Supplies Company. Lava tells Mining that it must receive the drill by Tuesday or it will lose $10,000. Mining ships the drill late. Lava can recover

a. $13,000.
b. $10,000.
c. $3,000.
d. $0.

Answer 1

B) $10,000

Step-by-step explanation:

In contract law, consequential damages are damages that the plaintiff can prove were caused by the defendant's failure to perform. Consequential damages are not limited to the amounts included in the contract.

In this case, Lava Excavators lost $10,000 because Mining Supplies didn't deliver the drill on time.