International Sale of Damaged Goods and Receiver’s Claims
The buyer can claim damages for the loss of profits. The buyer can claim loss of profit on actual order due to breach of contract. However, the court has to determine the foreseeability, causation, and actual proof of damages. The loss of profit must be a direct result of a breach of contract. In the case of Delchi carrier, SPA v. Rotorex Company, the court awarded the buyer damages for lost profits because the delivery of damaged goods constituted a breach of contract.
After the seller has received the damaged goods, he/she can claim expenses incurred. A customer can claim damages for breach of contract and losses incurred. This expense can be a result of a breach of contract or what is commonly referred to as “consequential loss.” In this case, the buyer has a right to claim damages due to expenses incurred when returning the goods to the seller. However, the damages claimed because of a breach of contract must be fair and reasonable. This means that any damages claimed by the buyer against the seller must arise from a normal business practice that resulted in a breach of contract.
When determining the damages incurred by the purchaser, a court ought to award damages approximately to the cost/losses incurred. However, the seller must prove that losses incurred resulted directly from the breach of contract. In this case, the buyer must demonstrate that the loss suffered is a direct consequence of the breach of contract. If the buyer cannot prove a direct correlation between losses incurred and breach of contract, a judge might argue that the alleged breach was too remote. However, the type of breach that can be claimed has been modified by the Sales of Goods Act 1979, which requires the seller to replace damaged goods when a buyer claims that there was a breach of contract.