X Contracts with Y to Purchase 1000 Sacks of Grain

question 49

Multiple Choice

X contracts with Y to purchase 1000 sacks of grain to be delivered on 1 September.Y however delivers the grain to X on 8 September and as a result of a drop in grain prices during the delay, X can only sell the grain at half the price that he would have been able to if Y had delivered the grain on time.The loss to X arising out of the breach of contract is classified as:

• A)Indirect loss.
• B)Consequential loss.
• C)Direct loss.
• D)Nominal loss.

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Definitions:

Required Rate

The minimum expected return by investors to compensate for the risks of an investment.

Fast-Food Chain

A series of restaurants offering quick service and a menu of fast food items, typically operating under the same brand name.

Proposed New Product

A concept or prototype being considered by a company for development and market introduction.

Discount Rate

The interest rate used to discount future cash flows to their present value.