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J sues B for breach of contract, seeking $10,000 for undelivered goods, plus another $5,000 that resulted when J was unable to finish a project because the goods did not arrive.

a. J can recover the additional $5,000 as consequential damages.
b. J can recover the additional $5,000 as compensatory damages.
c. J can recover the $10,000, but not the $5,000.
d. J can recover the additional $5,000 as liquidated damages.

User Wimalopaan
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1 Answer

1 vote

Final answer:

Consequential damages are a form of compensatory damages for indirect losses due to a breach of contract. If J's additional losses were foreseeable, J can recover the $5,000 as consequential damages.

Step-by-step explanation:

When J sues B for breach of contract, seeking compensation for damages, there are different types of damages that can be recovered in a court of law. Specifically, J is seeking $10,000 for undelivered goods, which would be considered direct losses and hence are compensatory damages. On top of that, J is seeking an additional $5,000 due to the inability to complete a project because the goods did not arrive. This can be classified as consequential damages because they are losses incurred as a result of the primary harm, which in this case, is the non-delivery of goods.

Consequential damages are a type of compensatory damages that are intended to reimburse the injured party for indirect losses. Such damages are only recoverable if they were foreseeable at the time the contract was made. Considering J’s claim, if the non-arrival of goods and the subsequent inability to finish the project were foreseeable, J could indeed recover the additional $5,000 as consequential damages.

Therefore, the most appropriate answer is:

a. J can recover the additional $5,000 as consequential damages.

User Anton Boritskiy
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