Question

Describe the distinction between the term profits as generally used by accountants and the use of the term in the law for lost profits measurements.

Answer 1

Lost profits in law refer to the breach of agreement done by buyer due to which a total sum of money has been lost.

On the other hand profits is gain which is excess of revenue over cost.

Lost profits are an estimate made whereas profits are actuals.

In Lost profits the aggreivead party can sue against the buyer for breach of agreement whereas in profits there no such agreement.

Lost profits are a remedy for the seller and profits are reward and gain for the seller

Lost profits are related to law and profits relates to accounting.