Which of the Following Does the Concept of Mitigation of Damages

question 49

Multiple Choice

Which of the following does the concept of mitigation of damages require?

• A)The party who breached the contract must pay the difference between what the innocent party received and what he should have expected to receive under the contract.
• B)The parties to the contract must self-insure for any potential risks under the agreement.
• C)The innocent party to the breach of contract must take reasonable steps to limit or minimize its losses.
• D)The innocent party must deduct normal expenses incurred to earn profit from the gross income.
• E)Both A and C

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Definitions:

Bridge

A structure built to span a physical obstacle, such as a body of water, valley, or road, without blocking the way underneath.

Base Level

The lowest point to which erosion by running water can occur, often the level at which a river meets the sea or lake.

Climate

The long-term pattern of weather in a particular area, typically averaged over a period of 30 years.

Stream-Cut Canyon

A deep valley formed through the prolonged action of a stream cutting through the terrain, often displaying steep sides.