Which of the Following Is True with Regard to Ending

question 167

Multiple Choice

Which of the following is true with regard to ending a contract by performance, agreement, frustration, or breach?

• A) The victim of a breach can recover damages even for the loss he could have avoided if he had tried to.
• B) A person who breaches a contract is liable for all the loss that directly and naturally flows from the breach, no matter how unforeseeable.
• C) An exemption clause that a seller claims absolves him from liability may be of no effect if the seller has committed a fundamental breach of the contract.
• D) If a person owing money has tendered payment in a reasonable way, at a reasonable time, and it has been refused, he is free from any further obligation to pay.
• E) If the court holds that a contract has been ended by frustration, the damages awarded by the court will be the same as if the contract was ended by a breach.

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Definitions:

Money Supply

The sum of all financial assets in an economy, including cash, coins, and the amounts in checking and savings accounts at a given point in time.

International Currency

A currency that is widely used for global transactions and accepted between countries, such as the US dollar or Euro.

Paul Krugman

An American economist and columnist known for his work on international economics, trade theory, and economic geography, as well as for being a Nobel laureate.

Dollar

The name of the official currency in several countries, including the United States, and a standard unit of currency in international markets.