First Principles of Business Law

Remedies for breach of contract

3. An award of damages

3.8. Types of loss: disappointment and distress

 

 

 

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

A, an online retailer, offers to pay B, a courier, $2 for each package of goods delivered by B to A's customers. B knows that the likely amount of work is impossible to predict but, for B, the contract is important because A is a well known, influential company. Within 24 hours of signing the contract, A tells B that he has decided to develop his own delivery services and won't need outside contractors at all. B is bitterly disappointed and upset.

Can B sue A for damages to compensate for his disappointment and distress?

(a) Yes. B's disappointment and distress are the direct result of the breach of contract and compensation for these things can be claimed as damages.

(b) No. Even if B's disappointment and distress are the direct result of the breach of contract the courts do not award damages to compensate for these things in such cases.

 

 

 

 

 

 

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