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Which of the following statements is correct regarding damages for a breach of a contract for the sale of goods?

A Either a nonbreaching buyer or a nonbreaching seller may recover consequential damages, but only a buyer may recover incidental damages

B Either a nonbreaching buyer or a nonbreaching seller may recover incidental damages, but only a buyer may recover consequential damages

C Either a nonbreaching buyer or a nonbreaching seller may recover consequential damages, but only a seller may recover incidental damages

D Either a nonbreaching buyer or a nonbreaching seller may recover incidental damages, but only a seller may recover consequential damages

User Liker
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1 Answer

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Final answer:

In a breach of contract for the sale of goods, both nonbreaching buyers and sellers can recover incidental damages, but only buyers may recover consequential damages.

Step-by-step explanation:

The correct statement regarding damages for a breach of a contract for the sale of goods is that either a nonbreaching buyer or a nonbreaching seller may recover incidental damages, but only a buyer may recover consequential damages. This corresponds to option B. Incidental damages are those expenses incurred in dealing with the breach itself, such as costs to acquire substitute goods or to make arrangements mitigating the breach. Consequential damages go beyond the contract itself and are caused by special circumstances outside the contract, like lost profits from business interruptions, provided they were reasonably foreseeable at the time the contract was made.

User Wilduck
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