First Principles of Business Law

Remedies for breach of contract

3. An award of damages

3.9. The duty to mitigate loss

 

 

 

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

A, a farmer, buys 10 kgs of Roma tomato seeds for $1000 from B, a seed merchant. A and B both know that A intends to grow and sell a crop of tomatoes. However, B fails to deliver the promised seeds to A. A knows that he can purchase 10 kgs of Roma tomato seeds from another supplier at the same price and still have time to grow a crop but he decides not to do this. He prefers to sue B for breach of contract, claiming damages for the lost profits he would have made on a crop of tomatoes.

In the circumstances, is A entitled to claim these damages from B on grounds of breach of contract?

(a) Yes, A is entitled to decide not to grow a crop of tomatoes at all, and sue B for the lost profit of the entire crop.

(b) No, A can't choose to do nothing. He must do what he can to minimise his losses. He can't claim any losses from B that he could have avoided.

 

 

 

 

 

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