Dave Was Contractually Required to Deliver a Widget to Pam

question 58

Multiple Choice

Dave was contractually required to deliver a widget to Pam by July 1. He failed to do so. At that point, Pam predicted that she would suffer a loss of $100 000 during the next six months because her factory cannot operate efficiently without a widget. Which of the following statements is TRUE?

• A) Because he is under a duty to mitigate, Dave will be held liable for $100 000 unless he takes reasonable steps to help Pam purchase a widget from another supplier.
• B) Because she is under a duty to mitigate, Pam must do everything possible to acquire a widget from another supplier.
• C) Because Dave is under a duty to mitigate, the damages that he must pay will be reduced to the extent that he reasonably spends money trying to help Pam purchase a widget from another supplier.
• D) Because she is under a duty to mitigate, Pam cannot receive any damages unless she purchases a widget from another supplier.
• E) Because she is under a duty to mitigate, Pam will be denied damages to the extent that she could reasonably avoid a loss flowing from Dave's breach.

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Moderate Consumption

The intake of substances like food or alcohol in amounts that are within guidelines considered healthy or low-risk.