Consequential Damages

Besides, consequential damages, such as loss of profits on account of delay or failure of delivery, may be recovered only if such damages were reasonably foreseen or have been brought within the contemplation of the parties as the probable result of a breach at the time of or prior to contracting. Considering the nature of the obligation in the instant case, respondent ABB, at the time it agreed to repair petitioner’s Kiln Drive Motor, could not have reasonably foreseen that it would be made liable for production loss, labor cost and rental of the crane in case it fails to repair the motor or incurs delay in delivering the same, especially since the motor under repair was a spare motor (Continental Cement v. Asea Brown Boveri, G.R. No. 171660, October 12, 2011).