Question

Mona contracts to repair a computer for New Data, Inc. (NDI) for $450 and have it done by next Monday. Mona knows that without the computer by Monday, NDI will lose a sale in which it will make $5,000 profit. Mona does not perform as promised, NDI loses the sale, and has to get someone else to repair the computer at a cost of $1,000. NDI files a suit against Mona. As consequential damages, NDI can recover:

Answer 1

Answer:

$5,000

Explanation:

Consequential damages are damages that result from the one party in a contract not performing their part or breaching the contract.

In this case, New Data can sue Mona for consequential damages resulting from Mona not performing her contractual obligations. The damages that New Data can recover = $5,000 which is the profit from the lost sale. The $1,000 spent fixing the computer cannot be recovered.