Which of the following would be considered consequential damages?
A) Commissions paid to effect cover
B) Expenses reasonably incurred for inspection of the goods
C) Damages to personal property and personal injury resulting from the malfunction of a machine warranted by the seller to be suitable for the buyer's purpose.
D) Storage charges for rejected nonconforming goods

Question

Quizplus · Accepted Answer

Consequential damages are indirect or special damages that result from the breach of a contract, which are not a necessary result of the breach but instead arise from special circumstances. Damages to personal property and personal injury resulting from the malfunction of a machine warranted by the seller to be suitable for the buyer's purpose would be considered consequential damages. Commissions paid to effect cover, expenses reasonably incurred for inspection of the goods, and storage charges for rejected nonconforming goods would be considered direct damages.

Which of the Following Would Be Considered Consequential Damages