If there is an increase in price of petrol, there would be a movement along the demand curve and a smaller quantity would be bought.
Liquidated Damages: These types of damages are awarded when there is a provision in a contract which states the amount of damages that shall be awarded in the event of a breach. Liquidated damages cannot be used as punishment to a party or to harm the party for the breach.
As an element of general damages, loss of profits may be recovered for a breach of contract if: 1  The loss is the direct and natural consequence of the breach, 2  It is reasonably probable that the profits would have been earned except for the breach, and. 3  The amount of loss can be shown with reasonable certainty.