Author Question: What is the difference between incidental damages and consequential ... (Read 82 times)

SAVANNAHHOOPER23 · **on:** Jun 24, 2018

What is the difference between incidental damages and consequential damages?

Question 2

Inez contracted with Filippo Furnaces Co for the installation of a new furnace. Inez selected the furnace she wanted, accepting no suggestions from Filippo Furnaces' heating engineer. The furnace operated fine, but it did not heat the entire house. The size of the blower on the furnace was too small to accommodate the third floor of the house. Inez sued Filippo Furnaces Co for the breach of the implied warranties of merchantability and fitness. What result?

dawsa925 · **Reply #1 on:** Jun 24, 2018

Answer to Question 1

An injured buyer is generally entitled to incidental and consequential damages. Incidental damages for buyers include such costs as advertising for replacements, sending buyers to obtain new goods, and shipping the replacement goods. Consequential damages, or losses that are caused by a breach, can be much more extensive and may include lost profits caused by the seller's failure to deliver. A buyer, however, only gets consequential damages for harm that was unavoidable.

Answer to Question 2

Inez will lose under both implied warranties. The implied warranty of merchantability was not breached because the furnace was operating according the standards of the heating industry. The implied warranty of fitness was likewise not breached. This warranty requires the seller to know of the buyer's particular purpose and that the buyer is relying on the seller's skill or judgment in recommending a particular product. Here Inez did not ask for or receive any suggestions from the seller or the seller's expert.