To be liable for consequential damages,the breaching party must ________ that the breach will cause special damages to the other party.
A) predict
B) intend
C) know
D) have reason to know
E) know or have reason to know

Question

Quizplus · Accepted Answer

To be liable for consequential damages, the breaching party must either know or have reason to know that the breach will cause special damages to the other party. This includes both actual knowledge of the potential harm and circumstances that would lead a reasonable person to conclude that damages are likely to occur. Therefore, choice E (know or have reason to know) is the best answer.

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