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Most courts hold that a seller of goods is not entitled to consequential damages?

1) True
2) False

User Andio
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1 Answer

6 votes

Final answer:

The claim that a seller of goods is never entitled to consequential damages is false according to the Uniform Commercial Code. Sellers may recover such damages if the loss meets the criteria of being foreseeable at the time of contract formation and if it is a direct result of the breach.

Step-by-step explanation:

The statement that most courts hold that a seller of goods is not entitled to consequential damages is false. Under the Uniform Commercial Code (UCC), specifically section 2-715, sellers may be entitled to consequential damages if a breach of contract by the buyer results in a loss that could not be prevented by cover or otherwise and if it meets the criteria of being a foreseeable result of the buyer's breach at the time of contract. It is within the seller's rights to recover any profit lost on the sale, as well as any other foreseeable damages directly caused by the breach, which can include loss due to injury to person or property if those were proximate results of the breach. Consequential damages can be complex, and while not automatically granted, they can be awarded under certain circumstances.

User Prithivi Raj
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