TechGear Inc. entered into a contract with SupplySource for the delivery of custom computer components by September 15 to meet their production schedule. SupplySource delivered the components two weeks late, causing TechGear Inc. to miss a critical product launch and lose significant sales. TechGear Inc. seeks damages for the losses incurred. Which type of damages is TechGear Inc. most likely entitled to recover based on the breach by SupplySource?
Liquidated damages as specified in the contract
Nominal damages because there was a breach of contract
Punitive damages because SupplySource acted with negligence
Consequential damages because the loss was a foreseeable result of the delay
The correct answer is consequential damages because the loss of sales from the missed product launch was a foreseeable result of the delayed delivery. SupplySource could reasonably anticipate that such a delay would result in financial losses for TechGear Inc., satisfying the requirements of causation and foreseeability.
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