First Principles of Business Law

Question 5

Which one of the following statements is correct?

(a) Consequential losses are those that arise indirectly from a breach of contract but damages can be claimed only if it can objectively be supposed that the parties would have thought about such losses when they contracted.

(b) Consequential losses are those that arise directly from a breach of contract and damages can be claimed for such losses regardless of whether they were thought about by the parties when they contracted.

(c) Consequential losses are those that arise indirectly from a breach of contract but damages can be claimed only if it can reasonably be supposed that the parties actually thought about such losses when they contracted.