ABC Manufacturing entered into a contract to supply 1,000 specialized widgets to DEF Retail by June 1st. Due to DEF’s late payment, ABC was unable to produce the widgets on time, resulting in DEF losing a lucrative contract with a major client. DEF seeks damages for the lost contract. What type of expectation damages is DEF most likely seeking?
DEF is seeking consequential damages, which are losses that result indirectly from the breach, such as the loss of a subsequent business opportunity. This differs from direct damages, which are the immediate losses directly caused by the breach.
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