First Principles of Business Law
Remedies for breach of contract

3. An award of damages

3.6. Types of loss: immediate (or direct) losses

 

 

 

Read the facts and the question and then choose the best answer.

A, a farmer, sees a bull offered for sale by B at an auction. The bull is described as 'a breeding bull'. A bids for the bull and buys it for $5,000 which is a fair price. But after he has paid B and taken delivery of the bull, tests show that the bull is infertile. As a slaughter animal, the bull is only worth $500.

A claims that, having paid $5,000 for a bull that is only worth $500, he has suffered a direct loss of $4,500. Can he recover this amount as damages for breach of contract?

(a) Yes, $4,500 is the direct loss flowing from the fact that the bull is infertile and this amount can be claimed by A as damages.

(b) No, the direct loss caused by a breach of contract does not include any part of the money paid under the contract for the thing bought.

 

 

 

 

 

Page 1 2 3 4 5 6 7 8 9 10 11
Go to the next topic Go to the previous topic Go to the list of topics Choose another module