Multistate Bar Examination Practice Question
A buyer who incurs a price difference from obtaining replacement goods and loses profits due to a breached contract can recover both types of damages as part of their expectation interest.
False
True
A buyer who incurs a price difference from obtaining replacement goods and loses profits due to a breached contract can recover both types of damages as part of their expectation interest.
False
True
This is true because expectation interest seeks to put the non-breaching party in the same position they would have been in had the contract been performed. The price difference is considered direct damages, while lost profits are consequential damages. Consequential damages are recoverable if they are reasonably foreseeable at the time the contract was made and can be proven with reasonable certainty.
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