Chuck, a photographer, entered into a contract to buy a high-end, professional c

Question

Chuck, a photographer, entered into a contract to buy a high-end, professional camera from Avis' camera company for $4,000. He told Avis that he needed the camera by une 1 for a law school reunion weekend he had been hired to photograph on e 34 A d ohave the camera une . Chuck was unable to take any pictures on June 3. He was able to rent a replacement camera for $300 in order to photograph the reunion on June 4. Chuck was ultimately able to buy a replacement camera for $4,500. Due to the failure to take pictures on June 3, however, Chuck lost $2,000 in profits on the reunion photography contract. What are Chuck's damages if he sues Avis for breach? A. $4,500 compensatory damages, $300 incidental damages, $2,000 consequential damages B. $4,000 compensatory damages, $300 incidental damages, $2,000 consequential damages C.$500 compensatory damages, $300 incidental damages, $0 consequential damages D.$500 compensatory damages, $300 incidental damages, $2,000 consequential damages

Explanation / Answer

Direct damage = Difference between the value of item as received and the value of the item if damage had not occurred. Here, direct damage = 4,500 -4,000 = $500. We can call it compensatory damage as well.

Incidental damage = Extra cost incurred by the non-breaching party in order to save another direct damage. In this example, Chuck has to take the camera on rent against which he paid $300, which he can claim as part of incidental damage while suing the breaching party.

Consquential damage = Lost profits. i.e. $2,000.

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