Liability in Contract

question 55

Multiple Choice

Liability in contract

• A)acts as an incentive to commit a breach of contract.
• B)acts as an economic deterrent to committing a breach of contract.
• C)acts as a punishment for committing a breach of contract.
• D)acts as both an economic deterrent and a punishment for committing a breach of contract.
• E)all of the above

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Definitions:

Tort

A civil wrong or injury, other than a breach of contract, for which the law provides a remedy in the form of damages to the injured party.

MBCA

Model Business Corporation Act, a set of model laws to standardize legislation governing corporations in the U.S.

Mandatory Indemnification

A legal requirement for a party to compensate for loss or damage incurred by another, often found in corporate bylaws and insurance policies.

Directors

Individuals elected by shareholders to oversee the management and make major decisions for a corporation.