If a supplier failed to honour a contract to supply parts to Mr. Matheson and the court finds the supplier in breach of contract, which of the following would be incorrect with respect to how the court determines the amount of money to award to Matheson?
A) If a deposit is involved, the damages will be restricted to that deposit.
B) The supplier would not be responsible for any unusual losses lost by Mr. Matheson because of some special use not told to the supplier.
C) Liquidated damages must be an honest attempt by the parties to pre-estimate damages.
D) The victim of the breach must take all reasonable steps to keep those damages as low as possible.
E) The supplier is responsible for all damages suffered by Matheson.

Question

Quizplus · Accepted Answer

The supplier is not responsible for all damages suffered by Matheson; they are only responsible for damages that were foreseeable or communicated at the time of contract formation.

If a Supplier Failed to Honour a Contract to Supply