Disclaimer of Consequential Damages Does Not Excuse Breaching Parties from Paying

question 28

True/False

Disclaimer of consequential damages does not excuse breaching parties from paying compensatory damages.

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Definitions:

Retention Ratio

The proportion of net income that is retained in the business rather than paid out to shareholders as dividends.

Compromise Policy

A method or strategy of resolving a conflict or dispute whereby all parties involved make concessions.

Financial Distress

A situation where a company cannot meet or has difficulty paying off its financial obligations to its creditors.

Cash Dividend

A distribution of profits by a corporation to its shareholders in the form of cash.