Which of the Following Statements Is TRUE

question 40

Multiple Choice

Which of the following statements is TRUE?

• A) Damages in contract are always backward- looking.
• B) Expectation damages compensate the plaintiff for expenses that it actually paid in reliance upon the contract.
• C) Damages in contract are always forward- looking.
• D) In deciding whether or not damages in contract should be forward- looking or backward- looking, a court will be influenced by whether or not the defendant's breach was deliberate.
• E) Damages in contract are usually forward- looking because the courts want to protect the fact that promises are valuable only if they will be kept in the future.

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Definitions:

Economic Profits

The net amount left when a business subtracts its full range of costs, explicit and implicit, from its entire revenue.

New Market

An emerging or previously unexplored segment of an industry where a business can expand or introduce its products or services.

Repeated Game

A strategic scenario in game theory where the same game is played several times, allowing players to revise their strategy based on past outcomes.

Nash Equilibrium

A concept in game theory where each player's strategy is optimal given the strategies of all other players in the game, leading to a situation from which no player has an incentive to deviate.