As a General Rule, Punitive Damages Will Not Be Awarded

question 37

Multiple Choice

As a general rule, punitive damages will not be awarded for a breach of contract unless

• A) monetary damages would not adequately compensate the plaintiff.
• B) the plaintiff committed an independently actionable wrong.
• C) the plaintiff seeks equitable relief.
• D) the defendant is guilty of breaching at least two obligations.
• E) the contract expressly allows for such relief.

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Definitions:

Internal Rate

The discount rate at which the net present value of all cash flows from a particular project or investment equals zero, used in evaluating the profitability of investments.

Accept

To agree to take or receive something offered.

Profitability Index

A financial tool used to evaluate the desirability of an investment, calculated by dividing the present value of future cash flows by the initial investment.

Positive NPV

A scenario in which the net present value of a project's cash inflows exceeds its cash outflows, indicating profitability.