When a Breach of Contract Has Occurred the Purpose of Damages

question 8

Multiple Choice

When a breach of contract has occurred the purpose of damages is to

• A) compensate the wronged party for the loss incurred.
• B) make the case an example to the rest of the community that this type of behaviour will not be tolerated.
• C) provide a deterrent for the breaking of moral and legal obligations.
• D) punish the one who has committed the breach by making him pay compensation.
• E) have the damages reflect the severity of the breach.

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Definitions:

Insurance Agent

A professional who sells, solicits, or negotiates insurance policies on behalf of an insurer.

Annuity

A financial service that ensures a regular payout to an individual, mainly intended as financial support for retirees.

EAR

Effective Annual Rate, the interest rate adjusted for compounding over a specified period, providing a true annual rate.

Weekly Payments

Regular payments made once a week as part of a financial agreement, often seen in loan repayments or salary distributions.