Which of the Following Statements Is TRUE with Respect to the Relationship

question 59

Multiple Choice

Which of the following statements is TRUE with respect to the relationship between tort and contract?

• A) A plaintiff who is entitled, on the basis of the same set of facts, to sue in both tort and contract should always sue in contract because contractual damages are always worth at least as much as tort damages.
• B) A plaintiff who is entitled, on the basis of the same set of facts, to sue in both tort and contract should always sue in tort because tort damages are always worth at least as much as contractual damages.
• C) The obligation to behave in a certain way is considered primary in contract and secondary in tort because contract is a more important area of law.
• D) Damages look backwards in contract but forwards in tort.
• E) The concept of privity is important in contract but not in torts.

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Definitions:

Maturity

The specified time at which the principal amount of a bond, loan, or other financial instrument is due to be paid in full.

Coupon Bond

A type of bond that pays the holder a fixed interest rate (coupon) over the bond's lifespan and repays the principal at maturity.

Yield To Maturity

The expected total yield from a bond assuming it is retained until the end of its term, accounting for all interest earnings and the return of the initial investment.

Market Yield

The current annual income return of an investment divided by the present market price.