Which of the Following Statements Is True of 'Direct Loss

question 1

Multiple Choice

Which of the following statements is true of 'direct loss' arising from a breach of contract by a defendant?

• A)It is loss that is not caused directly by the breach or would not ordinarily be expected to result from the breach.
• B)It entitles a plaintiff to an award of special, abnormal or extraordinary damages.
• C)It is only recoverable if it can be shown that the parties had the possibility of such loss in mind when the contract was formed.
• D)It is loss incurred by the plaintiff that flows naturally from the breach according to the ordinary course of events.

---

Definitions:

Expected Value

A calculation in probability theory that summarizes the expected return or outcome from a random event or situation.

Payoffs

The outcomes or returns received from an action or investment, often quantified in terms of profit or benefit.

Invest

The act of allocating resources, usually money, in the expectation of generating an income or profit.

Scrap Value

The estimated resale value of an asset at the end of its useful life, typically in a condition where it can only be sold for parts or raw materials.