Which type of damages can be recovered if they are foreseeable?

Study for the Georgia Bar Exam. Prepare with flashcards and multiple choice questions, each question has hints and explanations. Get ready for your exam!

Consequential damages are recoverable when they are foreseeable and arise from a party's breach of contract or tortious conduct. These damages typically occur as a secondary effect of the original harm and are not directly caused by the breach itself but rather result from special circumstances known to both parties.

In the context of contract law, for a party to recover consequential damages, they must demonstrate that these damages were within the contemplation of the parties at the time the contract was made. For example, if a supplier fails to deliver materials which causes a manufacturer to lose business opportunities, the lost profits could be deemed consequential damages if it was foreseeable that such losses would occur from the supplier's breach.

On the other hand, punitive damages are intended to punish a wrongdoer and deter similar conduct in the future; they are not tied to foreseeability. Specific performance is a remedy that compels a party to execute a contract according to its terms rather than providing a monetary remedy and is not a type of damages. Liquidated damages are predetermined amounts stipulated in a contract that a party agrees to pay upon breach, and they may not be tied specifically to foreseeability in the same way consequential damages are. Thus, the option referring to consequential damages is indeed the correct choice.

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