Which of the Following Is True of Damages Under the CISG

question 53

Multiple Choice

Which of the following is true of damages under the CISG?

• A) Damages for breach of contract by one party do not include loss of profit suffered by the other party as a consequence of the breach.
• B) The party claiming damages is under an obligation to mitigate losses.
• C) The foreseeability test cannot be applied in cases involving damage claim.
• D) The breaching party is not liable for any foreseeable damages.

---

Definitions:

Goodwill

An intangible asset that represents the portion of the business value that cannot be attributed to other business assets.

Loss on Disposal

The financial loss incurred when an asset is sold for less than its carrying value on the books.

Other Revenue

Income generated from activities not related to a company’s primary operations.

Fixed Assets

Long-lasting physical resources used in the functioning of a business, not expected to be spent or transformed into cash over the course of one year.