Question

When can you recover consequential damages?

1) When the damages are directly caused by the breach of contract
2) When the damages are foreseeable and arise naturally from the breach of contract
3) When the damages are too remote and speculative
4) When the damages are limited to the actual cost of repairs

Answer 1

Consequential damages can be recovered in a breach of contract case when the damages are foreseeable and arise naturally from the breach of contract.

Step-by-step explanation:

Consequential damages can be recovered in a breach of contract case under certain conditions. Generally, consequential damages are damages that arise naturally from the breach and were reasonably foreseeable at the time of contract formation. So, option 2) When the damages are foreseeable and arise naturally from the breach of contract is correct.