Under the economic loss rule, when a breach of contract does not include a tort, such as injury to persons, the damages:
A) only relate to economic losses suffered from the breach
B) are limited to half the economic losses suffered from the breach
C) are not related to the monetary losses suffered from the breach
D) must exceed the direct costs suffered from the breach
E) none of the other choices are correct

Question

Quizplus · Accepted Answer

The economic loss rule limits damages in a breach of contract case to economic losses suffered by the plaintiff as a result of the breach, such as lost profits or expenses incurred to remedy the breach. This means that damages are not awarded for emotional distress or physical harm. Therefore, choice A is the correct answer.

Under the Economic Loss Rule, When a Breach of Contract