Which of the Following Remedies Are Available to Either a Buyer

question 29

Multiple Choice

Which of the following remedies are available to either a buyer or seller following a breach by the other party?

• A) Canceling the contract and recovering incidental damages
• B) Covering and suing for incidental damages
• C) Obtaining specific performance and stopping delivery of the goods
• D) Canceling the contract and suing to recover the price

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Definitions:

Social Optimum

A state in which resources are allocated in the most efficient way from the perspective of society as a whole.

Economic Efficiency

A state where all resources in an economy are optimally allocated to serve each individual or entity in the best way while minimizing waste and inefficiency.

Transaction Cost

Expenses incurred when buying or selling goods or services, including fees, taxes, and other charges.

Externality Problem

A situation in which a third party is affected by the consequences of a transaction or activity between others, either positively or negatively.