Crucial Exams

Multistate Bar Examination Practice Question

A software development company entered into a contract to deliver a custom software solution to a retail chain by a specified deadline. The development company breached the contract by failing to deliver the software on time. The retail chain had to hire a substitute software developer at a higher price, which led to additional costs. The retail chain also lost significant profits during the period their operations were delayed. Which of the following types of damages is the retail chain entitled to recover for its losses?

  • Reliance damages for the expenses incurred before the breach

  • Expectation damages for the additional cost of completing performance and lost profits

  • Punitive damages to penalize the software development company

  • Incidental damages for the costs of mitigating the breach

Multistate Bar Examination
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