Question

Tile & Grout (T&G) contracts to resurface the insides of the pools at WaterWorld Park. T&G knows that without the resurfacing, WaterWorld will have to delay its seasonal opening. T&G does not perform as promised. As consequential damages, WaterWorld can recover

A) the cost of new pools
B) the difference between T&G's price and the eventual cost of resurfacing.
C) the loss of profit from the delayed opening.
D) nothing.

Answer 1

Answer:

C) the loss of profit from the delayed opening.

Explanation:

Consequential damages refer to damages resulting from a party not performing its side of the contract. Consequential damages are not limited to the actual contract and may include lost revenue or additional unexpected costs incurred.

In this case, WaterWorld Park can sue Tile and Grout for the lost revenue due to delaying its seasonal opening. Consequential damages do not include the  costs that another company might charge them for resurfacing the pools.