Profit

Profit

May 5, 2021
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Are profits that “might have been earned” through the sales of goods if they were not damaged or lost a legitimate part of a claim?  

Answer and ExplanationSolution by a verified expert

No. The profit on lost/destroyed goods is recoverable from the seller if considered "earned" and if the sale transaction had been completed except for physical delivery of the goods. In most cases, courts will not award damages based on speculative profits - those that might have been earned through later sale of goods but were not contractually assured at the time of the loss  (Barrett, 2003, p. 182) .
 
References
Barrett, C. (2003). Manager's guide to freight loss and damage claims. Loft Press.

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