Which of the Following Statements Is Correct Regarding the Duty

question 23

Multiple Choice

Which of the following statements is correct regarding the duty of the plaintiff to mitigate his or her damages?

• A) The duty to mitigate is no longer part of the law of Canada.
• B) The plaintiff is relieved of the duty to mitigate if the case involves a breach of a major term of the contract.
• C) Everyone who suffers a breach of contract has a duty to mitigate.
• D) A party will be relieved from the duty to mitigate if it will require a cash outlay.

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Definitions:

Petty Cash Fund

A small amount of cash on hand used for minor or incidental expenses within a business.

Custodian

An individual or entity responsible for safeguarding assets, such as cash or securities, ensuring their safekeeping and proper use.

Journal Entry

A record in the accounting journal that represents a transaction and includes debits and credits.

Cash Register Overages

The situation where the amount of cash in a cash register exceeds the expected amount based on sales records.