Daniel's failure to deliver ice-cream makers and waffle makers on time, resulted in a two-week delay in the opening of Sheena's new ice-cream parlor. Sheena incurred a heavy loss since she had to pay the rent for those two weeks, as well as salaries to the personnel hired. Which of the following damages can Sheena claim from Daniel for breach of contract?
A) Liquidated damages
B) Consequential damages
C) Compensatory damages
D) Nominal damages
E) Negotiated damages

Question

Quizplus · Accepted Answer

Consequential damages are court-awarded damages arising from unusual losses which the parties knew would result from breach of the contract. Example: plaintiff's losses due to closing of business when defendant knew that failure to deliver ordered equipment would cause the losses.

Daniel's Failure to Deliver Ice-Cream Makers and Waffle Makers on Time