Question

Gabriel, Inc., a widget retailer, enters into a single lot shipment contract with Widgets Unlimited, a manufacturer of widgets in Ohio. Widgets Unlimited agrees to deliver a total of 37 widgets to Gabriel by Friday. The total cost of the widgets is $1,000. Widgets Unlimited fails to deliver the widgets on time, and Gabriel has to buy replacement widgets from another manufacturer. The replacement widgets cost Gabriel a total of $2,000, plus Gabriel had to pay for expedited shipping, at a cost of $100. Which of the following is the total amount of consequential damages Gabriel may recover as a result of the breach by Widgets Unlimited? a. $100 b. $1,000 c. $2,000 d. $3,000

Answer 1

Question:- Which of the following is the total amount of consequential damages Gabriel may recover as a result of the breach by Widgets Unlimited?

Answer:- B:- $1000

Reason:- Consequential damages result when a party to a contract fails to fulfill the contractual obligations. In the case presented, Gabriel, Inc. has to bu the products at a cost of $2000 which the company could buy at a price of $100 thus there is a loss of $1000 which can be claimed as a breach of contract.