To be liable for consequential damages,the breaching party must ________.
A) be placed with a duty to make reasonable efforts to mitigate damages
B) have not caused any monetary damages to the nonbreaching party
C) provide a disclaimer of foreseeable consequential damages
D) know that the breach will cause special damages to the other party

Question

Quizplus · Accepted Answer

The breaching party must have knowledge that the breach will cause special or consequential damages to the other party in order to be liable for such damages. Therefore, option D is the correct choice. Option A is incorrect because the duty to mitigate damages is placed on the non-breaching party, not on the breaching party. Option B is also incorrect as causing monetary damages is a requirement for liability and not a defense. Option C is incorrect because a disclaimer of foreseeable consequential damages would not absolve the breaching party of liability if the damages were still foreseeable.

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