To be liable for consequential damages,the breaching party must know or have reason to know that the breach will cause special damages to the other party.

Question

Quizplus · Accepted Answer

This statement is true. In order for a breaching party to be liable for consequential damages, they must have knowledge or reason to know that their breach will result in special or consequential damages for the other party. This is because consequential damages go beyond the direct losses caused by the breach and may include losses such as lost profits or business opportunities.

To Be Liable for Consequential Damages,the Breaching Party Must Know