Assume That One Party to a Contract Does Not Complete

question 17

Multiple Choice

Assume that one party to a contract does not complete her end of the agreement. The other person sues and is awarded money that is about equal to the damages sustained by the breach of contract. This money is known as

• A) punitive damages.
• B) consideration.
• C) compensatory damages.
• D) breach damages.
• E) standardized damages.

---

Definitions:

Nominal Rate of Interest

The rate of interest before adjustments for inflation.

Inflation Rate

The speed at which the overall price level for goods and services increases, leading to a decline in buying power.

Purchasing Power

The value of a currency expressed in terms of the amount of goods or services that one unit of money can buy.

Bracket Creep

A phenomenon where inflation pushes income into higher tax brackets, increasing taxation without an actual increase in real purchasing power.