Which of the Following Statements Is Not True of 'Indirect

question 30

Multiple Choice

Which of the following statements is not true of 'indirect loss' arising from a breach of contract?

• A)Indirect loss is loss that is not caused directly by the breach or would not ordinarily be expected to result from the breach.
• B)Indirect loss entitles a plaintiff to an award of special, abnormal or extraordinary damages.
• C)Indirect loss is only recoverable if it can be shown that the parties had the possibility of such loss in mind when the contract was formed.
• D)Indirect loss is loss incurred by the plaintiff that flows naturally from the breach according to the ordinary course of events.

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Definitions:

Office

An office is a room, set of rooms, or building where the work of a business or organization, particularly clerical work, is conducted.

Salesperson Commissions

are the payments made to sales staff based on the value or volume of sales they have made.

Prime Costs

The direct costs of manufacturing a product, which include raw material and labor expenses directly tied to the production process.

Conversion Costs

These are costs incurred during the manufacturing process to convert raw materials into finished products, including direct labor and factory overhead expenses.