Question

Apply the given legal principles to the facts provided in the following of the question and select the most appropriate answer.
Principle : Damages consequent to a breach of contract seek to compensate the innocent party for the loss suffered by it so that the innocent party is put in the same situation, with respect to damages so far as money can do it, as if the contract had been performed.
Facts : A agrees to sell 30 kgs of strawberries to B knowing that B uses the strawberries to run his juice center. B’s juice center is located off St. John’s College of Delhi University, and is very popular with the students. A supplies sub-standard quality of strawberries to B. However, B is able to use all the strawberries for his juice centre. None of the customers of B are able to make out the difference or complain about the juice or for that matter face any issues after drinking the juice. Can B recover damages from A ?

• A. A is liable to compensate B for supplying sub-standard quality of strawberries
• B. A is not liable to compensate B since B suffers no monetary loss
• C. A is not liable to compensate B because the contract did not prevent A from supplying sub-standard quality of strawberries
• D. A is not liable to compensate B since none of the customers of B have proceeded against A for supplying bad quality strawberry juice

Answer 1

The Correct Option is B

To determine whether B can recover damages from A, we must apply the legal principle regarding damages in contract law. The principle states that damages from a breach of contract are meant to compensate the innocent party for any loss suffered, effectively placing them in the same position as if the contract had been fulfilled.

The key issue here is determining if B has suffered any loss due to the sub-standard quality of strawberries provided by A. Examining the facts:

• B uses the strawberries for his juice center, which remains popular.
• None of B's customers notice any issues with the juice quality, nor do they complain.
• B incurs no financial loss because the sales and customer satisfaction appear unaffected.

Since the purpose of awarding damages in contractual breaches is to compensate for financial loss, and B has incurred none, he cannot claim damages from A. Applying the principle directly to these facts, the most appropriate answer is:

A is not liable to compensate B since B suffers no monetary loss.