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

Solution and Explanation

The correct option is (B) : A is not liable to compensate B since B suffers no monetary loss.
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