Meatpackers,Inc.,enters into a contract with Nemiah's Ranch for the delivery of a certain number of beef cattle on a set schedule.Nemiah's delays the first delivery for five days,aware that Meatpackers loses a certain percentage of profit each day.An award to Meatpackers of consequential damages would
A)establish,as a matter of principle,that Nemiah's acted wrongfully.
B)provide Meatpackers with funds for a foreseeable loss beyond the contract.
C)provide Meatpackers with funds for its loss of the bargain.
D)punish Nemiah's and set an example to deter other suppliers from similar acts.

Question

Quizplus · Accepted Answer

Consequential damages are awarded to compensate the non-breaching party for losses that were a foreseeable result of the breach, but that were not directly caused by the breach itself. In this case, Meatpackers had a foreseeable loss beyond the contract due to the delay caused by Nemiah's. Therefore, an award of consequential damages would provide Meatpackers with funds for this loss. The other options are not relevant to the purpose of awarding consequential damages.