What Common Law Remedy or Remedies Are Available to an Innocent

question 18

Multiple Choice

What common law remedy or remedies are available to an innocent party where the other party has breached a condition of the contract?

• A)Damages and injunctions.
• B)Termination of the contract or an order for specific performance or both remedies.
• C)Termination of the contract or damages or both remedies.
• D)Damages only.

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Definitions:

Perpetual Inventory System

A method of accounting for inventory that records real-time transactions of goods as they come in and out of stock, thus maintaining a continuously updated inventory balance.

Periodic System

A method of inventory valuation for financial statements where purchases during the period are recorded directly to an inventory account and the cost of goods sold is determined at the end of the accounting period.

Purchase Discounts

A reduction in the purchase price, allowed by the seller to encourage early payment by the buyer.