A buyer may not recover consequential damages that could have been prevented by cover.

Question

Quizplus · Accepted Answer

This is a basic principle of the UCC (Uniform Commercial Code) that governs sales contracts. The buyer has a duty to mitigate damages, which means they should take reasonable steps to minimize losses resulting from a breach of contract. One way to do this is by finding substitute goods, also known as "cover," and the damages recoverable by the buyer are limited to the difference between the contract price and the cover price, plus any incidental expenses. However, if the buyer fails to mitigate damages and incurs additional losses or damages that could have been avoided with reasonable efforts, these are considered consequential damages that are not recoverable.

A Buyer May Not Recover Consequential Damages That Could Have